Public Schools can claim Medicaid School-Based Claiming (MSBC) or extra funds from the state when special needs children are involved. In order for a school to claim these extra funds a child must have an Individual Education Program (IEP), which can only be provided by a public school. Upon accepting ESA funding, public schools are no longer obligated to provide an IEP for these students. Since ESA children no longer have access to IEPs private schools cannot claim funds for eligible students. Arizona Health Care Cost Containment System (AHCCCS) oversees these claims for extra funds.
You can reach out to AHCCCS with further questions here: http://www.azahcccs.gov/shared/contacts.aspx
Or contact PCG who administers MSBC in Arizona here: http://web.pcgus.com/azschools/contact/index.html