Reasons Not to Let Schools Bill Your Insurance
Author: JoAnn Collins
Published: 3 Mar 2009 - Updated: 22 Jun 2026
Publication Type: Informative
Contents: Synopsis - Definition - Introduction - Main - Insights, Updates - Related Publications
Synopsis: This information explains why parents of children receiving special education should think carefully before giving a school district written consent to bill their private insurance for related services and evaluations, and it lays out five specific reasons to withhold that consent. Written by an experienced special education advocate, it points out that services such as physical, occupational, and speech therapy are an entitlement under the Individuals with Disabilities Education Act, that districts already receive state, federal, and Medicaid funding for these supports, and that allowing insurance to be billed can erode a child's lifetime benefit caps or lead to unnecessary testing driven by reimbursement. The guidance is helpful and practical because it draws on years of advocacy work to show parents how the consent form is worded, what their options are, and how to protect both their child's services and their family's insurance coverage.*
At a Glance
- 1 - Between 2000 and 2002, states returned roughly 1.7 billion dollars in unused IDEA funds to the federal government, money that could have paid for related services.
- 2 - Many private insurance policies carry benefit caps, so billing for therapy and evaluations can exhaust a child's coverage or affect their ability to obtain insurance later.
- 3 - The consent form is voluntary and should offer two clear choices - one box to allow billing of private insurance and one box to decline it.
- Topic Definition: Special Education Related Services
Special education related services are the supportive services a child with a disability needs in order to benefit from their education, and they are guaranteed under the Individuals with Disabilities Education Act (IDEA) in the United States. These services can include transportation, physical therapy, occupational therapy, and speech or language therapy, along with certain evaluations and psychological or developmental testing used to identify a student's needs. Because they are treated as an entitlement rather than an optional extra, school districts are responsible for providing them and receive state, federal, and Medicaid funding to do so - which is why parents are sometimes asked to consent to having private insurance billed, a request they are free to decline.
Introduction
Is your child receiving special education related services? Have you been asked to give written consent, so that your school district can bill your private insurance company? This article will give you 5 reasons not to consent to having your private insurance billed for related services and evaluations.
Main Content
Are you the parent of a child with autism or dyslexia?
Is your child receiving special education related services?
Have you been asked to give written consent, so that your school district can bill your private insurance company?
This article will give you reasons not to consent to having your private insurance billed for related services and evaluations.
Related services are special education services that your child needs to benefit from their education. They can be: transportation, physical therapy (PT), occupational therapy (OT), speech/language therapy. Private insurance can also be billed for psychological testing (though many will not pay for this), testing for OT, PT, and Speech/language.
Below are reasons why every parent in the US should refuse to have their private insurance billed for special education services:
Reason 1
The Individuals with Disabilities Education Act states that all children with disabilities have the right to special education and related services to meet their educational needs. Most parents have to fight so that their child can receive appropriate services in the correct amounts to meet their needs; but special education is an entitlement!
Reason 2
School districts receive state and federal funding for related services. While federal funding does not pay all of the costs, states also chip in.
Also, every state in the USA has returned money to the federal government, for IDEA funds that have gone unused. Between 2000-2002 state board of educations sent back 1.7 billion dollars of unused IDEA funds! Find out how much your school district sent back by contacting your state board of education!
There is money, it is just that many special education personnel have other priorities, rather than giving related services to needed children.
Reason 3
The children in the district receiving Medicaid, often have their parents give consent for school districts to seek reimbursement for related services. This is another funding stream that school districts receive, that they rarely discuss. This could amount to millions of dollars in some school districts, so do not worry about your schools pocketbook!
Reason 4
Many insurance companies have caps on benefits. If you allow your insurance to be billed, your child may reach their cap, which means they would have no insurance. Also this may prevent your child from getting insurance in the future, if they have major bills for related services and evaluations.
Reason 5
If you allow your insurance company to be billed for psychological testing or other testing, special education personnel may ask for testing that your child does not need. Reimbursement should not be the reason for testing your child; educational needs and services needed should be the reason.
Form
The form that you may be asked to sign would probably state: Parent consent for reimbursement of health related services. Read this form very carefully. It should state that this permission is voluntary. Also on the form should be 2 boxes: 1. I give consent for billing of my private insurance company for related services and evaluations or 2. I do not give consent for billing of my private insurance company for services and evaluation.
By understanding these 5 reasons, you will know why it is in your child's best interest to not give consent for your private insurance to be billed, for related services and evaluations.
Reference
JoAnn Collins is the mother of two adults with disabilities, and has helped families navigate the special education system, as an advocate, for over 15 years. She is a presenter and author of the book "Disability Deception; Lies Disability Educators Tell and How Parents Can Beat Them at Their Own Game." The book has a lot of resources and information to help parents fight for an appropriate education for their child.
Insights, Analysis, and Developments
Editorial Note: The central message here is that consent is a choice, not an obligation, and that a parent's signature on a billing form can carry consequences that reach well beyond the school year - touching lifetime coverage limits, future insurability, and even the kinds of tests a child is asked to undergo; reading the form closely and understanding that related services are already a funded entitlement puts families in a far stronger position to keep the focus where it belongs, on what the child genuinely needs to learn.** Editorial additions by Ian C. Langtree.