U.S. agency rejects Ohio-schools settlement

COLUMBUS (AP) -- The federal government has rejected a settlement that would have salvaged $67 million for special-education programs in school districts statewide.
The settlement had been reached in June between the state and a dozen school districts that had sued for the lost money, but the plan required federal approval. Now, schools must continue to pay bills, previously shared by the federal and state government, with no guarantee of eventual reimbursement.
Affected services for pupils include speech, occupational and physical therapy, nursing and psychological care.
The administrator of the federal Centers for Medicare and Medicaid notified state officials that he was rejecting the deal.
Mark McClellan said the plan violated a host of federal regulations, would serve "select groups of students," involved a limited number of providers, and was not applicable statewide as required by Medicaid.
The federal government pulled the $67 million that goes to schools after the budget year ended June 30.
It said that because the state program was restricted to public school pupils, it didn't meet a requirement that services be available to all Medicaid recipients.