Apparently there is an exception: you can play again, but not for the university you medically retired from. So Jones could medically retire, but if she decided she did want to play she'd have to transfer out.A medical retirement can be awarded scholarship dollars and not count against the limit. However, they can't ever play again.
I've seen it happen most often in football -- scholarship guy gets a career-ending injury. Stays on scholarship, gets moved to "non-counter" status, and ends up working with the team in some capacity until graduation.
EDIT: Based on @Three4Cy 's post above, it looks like there's an exception to the exception -- you can play for the same university as long as there's retroactive space on the roster.
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