Medicaid Reform Advocates Coalition Blog

The Medicaid Reform Advocates Coalition is a group of consumer advocacy organizations monitoring the implementation and effects of the Florida Medicaid Reform. MRAC coalition partners represent different constituencies affected by Medicaid Reform. MRAC ‘s mission is to ensure that consumers’ interests are safeguarded as they are enrolled in private managed care plans and that the level of care they receive is adequate and appropriate for their needs. Contact MRAC at medicaidreform@pobox.com.

Tuesday, May 01, 2007

State budget includes Medicaid dollars for low-income hospital Patients


Originally published — 1:00 p.m., April 30, 2007
Updated — 9:54 p.m., April 30, 2007

Florida hospital officials can breathe easier now that a critical source of funding for treating uninsured patients appears intact rather than on the verge of disappearing.

State legislative leaders have drafted a budget plan for the new year, which includes $81 million to continue funding a Medicaid program that helps hospitals treating large numbers of uninsured patients.

House and Senate leaders agreed during the weekend to allocate the money to the low-income pool program, which can be used to draw down more than $1.1 billion from the federal government in Medicaid funding for hospitals.

In addition, local governments contribute $723 million to the low-income pool program.

The budget plan was expected to be presented to lawmakers Monday as they enter their final week of the session.

The $81 million for the low-income pool program theoretically could face a line-item veto of Gov. Charlie Crist, but that isn’t anticipated.

“We believe he understands the value that hospitals provide in meeting the care needs of our uninsured patients,” said Rich Rasmussen, spokesman for the Florida Hospital Association.

Lee Memorial Health System in Lee County stands to lose $4.6 million if the Legislature doesn’t act to continue funding the program. The NCH Healthcare System would lose $932,000 and Physicians Regional Medical Center-Pine Ridge would lose $69,000.

The state’s low-income pool program was on shaky ground during the legislative session when a House budget committee allocated $65 million to continue funding the program but no such appropriation came out of the Senate. That forced the issue onto Senate leaders to add into their budget plan.

The state’s low-income pool program was created one year ago with a waiver by the federal government to help hospitals that face increasing unreimbursed costs for treating the uninsured who don’t quality for traditional Medicaid.

If the Legislature was to quit funding the state match to receive the federal dollars for the program, $209 million would disappear, causing further hardship to already overwhelmed emergency rooms and trauma centers.

Officials with Lee Memorial and NCH couldn’t be reached for comment Monday.