According to a newly released report, community colleges miss out on at least $115 million in available Medicaid funding each year. Only 3% of community colleges bill Medicaid for services, despite 84% of community colleges likely being eligible for Medicaid reimbursement.
The report, “Increasing Student Support and Success by Boosting Medicaid Engagement,” draws on data collected from a review of over 1,000 community colleges.
“There is a missed opportunity right now where community colleges could be getting in a significant source of recurring funds that they are not currently claiming,” said Ryan Stewart, report co-lead and Founder and CEO of Mile 2 Consulting, LLC. “I want to raise awareness of that and try to build a culture where more community colleges take advantage.”
There are growing mental health concerns among college students and an increase in demand for all student health services among community college students. Unfortunately, the demand for student health services often exceeds a community college’s resources.
Eligible health services include but are not limited to, psychological services, counseling, nursing services, physical therapy, Medicaid outreach and case management. According to Stewart, the call for community colleges to consider Medicaid reimbursements is more critical now than ever.
“We’ve seen this growing need for particularly mental health resources at at the college level, and we’ve also seen that many colleges relied on COVID relief funding,” said Stewart. “Those funds are now expired, so you have a lot of schools right now who are looking for ways to sustainably replace those funds, and Medicaid could be a really important source.”
Stewart previously served as the Secretary of Education for New Mexico and has inspired his thinking about how K-12 schools accessed student resources through Medicaid.
“In that role we had done a lot of work with our Human Services department because they were really passionate about making sure K-12 schools knew about Medicaid and were doing all they could to claim all available funds,” he said. “Since I’ve left that role, I’ve done a lot of work to try to look at this from a national perspective.”
Dr. Sara Goldrick-Rab, report co-lead and senior fellow at Education Northwest, brought a higher education perspective to the project.
“For more than a decade I’ve documented the clear need for community colleges to offer basic needs and related health services,” said Goldrick-Rab, who is also a columnist for Diverse. “A growing number of administrators are trying to offer that help to students but struggle to afford the costs. My hope is that this report spurs action and increases funding available to support student success at community colleges.”
Stewart and Goldrick-Rab projected the amount of money that community colleges could potentially generate through Medicaid reimbursement claims, taking into account the health services currently offered at the school, an estimate of the number of students receiving each category of services, an estimate of the number of Medicaid-eligible students enrolled at the school and an estimate of the average reimbursement per student.
According to the report, community colleges in the United States could collectively generate approximately $115 million in recurring reimbursement revenue from Medicaid.
“Healthcare access is a critical component of student success and if students are experiencing either mental health or physical health crises and don’t have access to care, that can be a barrier to successful post-secondary completion,” said Stewart. “But that has to be funded. A lot of these services are not cheap, and for colleges who are looking for every resource to try to sustain their whole portfolio of programming, finding sustainable resources like [Medicaid] where money is already appropriate could really make a big difference if you’re looking to either sustain or expand health service programming.”
When asked why they choose not to claim Medicaid reimbursements for eligible services, community college administrators listed several reasons, including the lack of capacity to manage the Medicaid billing process.
“The primary barrier colleges face when accessing this funding is a lack of information about its existence and what’s required to obtain it. Ironically, that’s the same challenge students face when accessing other funding like financial aid and SNAP,” said Goldrick-Rab. “Of course, some colleges will still struggle to have sufficient staff to offer services in the first place, [because] you have to offer them in order to be reimbursed and deal with the billing.
Goldrick-Rab said she and Stewart hope to offer technical assistance to teach colleges how to manage this process adequately.
“I believe addresssing the informational barriers alone will close a lot of the gap. Imagine if even 50% of the colleges offering eligible health services got Medicaid reimbursement, compared to just 3%? That would be a major win,” she added.
The report provides recommendations for community colleges, state Medicaid agencies, and the Center for Medicare and Medicaid Services. It urges community colleges to create partnerships with their state Medicaid agencies so that they can be informed about their eligibility and request the support needed to optimize health services and revenue potential.
“Everyone is talking about the student mental health crisis, but until now, I haven’t seen many offering funding options,” said Goldrick-Rab. “We have to ensure community colleges have the resources needed to do this critical work.”
