Neither is Medicaid responsible for her GPA, but that is a different matter. How important is it to your daughter that she not be discharged from that specific school? Doing whatever you might be considering to help keep her there is between the two of you, in my own opinion, but are both of you certain that would actually be helpful? Pulling her out for the remainder of the school year to give her some time to respond to treatment and possibly adjust meds so she can stabilize and then do some catching up in preparation for next year (even if a year behind her current classmates) is something I think I would seriously consider and discuss with her.