Gill-Montague Regional School District owes nearly one million dollars to federal government

The school district is trying to determine how they'll pay back all the money

MONTAGUE, Mass. (WWLP)- The Gill-Montague Regional School District is in a lot of debt.

The school district owes more than $900,000 dollars to MassHealth in Medicaid reimbursements.

“Its associated with Medicaid and the school department, and evidently they are going to have to it pay it back and its going to have an impact, probably on the taxpayers,” said Bob Macewicz of Turners Falls.

The Gill-Montague Regional School district is one of many school districts in the U.S. that participate in the Federal School-Based Medicaid Program.

In this program, school districts are reimbursed for the costs of paying for Medicaid eligible services to students, but the school district found out that since 2010 they were collecting too much money in reimbursements.

These Medicaid services include occupational therapy and physical therapy at schools, as well as hiring para professionals. The school district is trying to determine how they’ll pay back all the money.

“That’s a lot of money to have to pay back and we have figure out some sort of payment plan, hopefully over a large number of years that will hopefully allow us to pay that back,” said Superintendent of Schools, Michael Sullivan.

Sullivan told 22News the school district had been following billing procedures recommended by New England Billing, who they hired to manage this Medicaid program.

Sullivan said it’s unclear how it could affect the school district’s finances going forward.

Medicaid Reimbursement News Release