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insurance to pay for IDEA Part C services cited costs such as decreasing available lifetime coverage for a child or parent; paying for services that would otherwise be covered by the public benefits or insurance program; increasing premiums or discontinuing public benefits or insurance for that child or parent as a result of such use; and risking loss of eligibility for Medicaid home and community-based waivers based on overall health expenses.

Discussion: We are restructuring and revising §303.520(a)

regarding the use of public benefits or insurance to pay

for Part C services in response to commenters’ concerns.

As described in the following paragraphs, we believe this approach is consistent with the statutory framework and the provisions in sections 632(4)(B), 635(a)(10), 639(a)(2), and 640 of the Act.

Statutory framework. Section 632(4)(B) of IDEA, which defines early intervention services, includes in the definition a requirement that such services must be provided at no cost, except where Federal or State law provides for a system of payments by families, which can include costs such as charging parents a sliding scale fee for Part C services. Section 635(a)(10)(B) requires the State lead agency to identify and coordinate all available resources in the State from Federal, State, local, and