Florida Feds Hammer Out Medicaid Overhaul

FORT LAUDERDALE, Fla. (AP) — Federal health officials are pushing Florida lawmakers to require private health plans to spend 85 percent of funds on patient care under the Medicaid overhaul.

That issue has been a sticking point as the state seeks to expand a five-county Medicaid privatization program statewide.

Federal health officials must approve the plan.

State lawmakers created a profit sharing plan, requiring providers to generate a 5 percent savings the first year. Texas has a similar program.

During a Senate subcommittee meeting Wednesday, state health officials said it’s unclear why feds were willing to allow Texas to use that formula, but not Florida.

Another sticking point is the low-income pool. The program funnels extra money to hospitals and providers serving uninsured patients.

Federal officials said they may terminate supplemental funds by December 2013.

Source: Kelli Kennedy, Associated Press