On Thursday, the Obama administration offered Florida hospital funds for another two years but it was only half of what the state received last year.
The deal might help fill the $1 billion state budget hole though and solve the legislative stalemate.UF Health in Jacksonville is also at risk to lose $95 million in funding care for low-income patients so the money would help them as well.
The feds have said they want to work with the state in good faith because they recognize legislatures need to pass a budget by June 30 in order to avoid a state shutdown.
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One might speculate the feds decided to provide some money because they know they will not win the lawsuit Governor Scott has filed against them for trying to bully the state to expand Medicaid even though courts had previously ordered states did not have to under Obamacare.
UF Health Jacksonville released the following statement on Thursday:
We are aware of the discussions taking place between federal and state officials and are encouraged that they appear to be heading in a positive direction. Clarity on the LIP program from CMS will remove considerable ambiguity from the healthcare issues the legislature will be dealing with in the upcoming Special Session and we are hopeful that the Senate and House will work together to help us and other safety net hospitals continue their mission of serving the citizens of Florida.
The federal government said the proposal puts other states not participating on notice that the Obama administration will not use “the funding to pay for costs that would be covered in Medicaid expansion.” The federal government also stated they acknowledge loosing the hospital funds may be difficult for the states. The current hospital funds for Florida are $2.1 billion. The federal government pays 60% and Florida pays the other 40%.
Obama’s administration is proposing to fund $1 billion for two years and said the year after that they will be cutting that amount to $600,000 million.
Governor Scott has not stated if he will take the proposed funding and drop his lawsuit. His only comment was he will look over the proposal very carefully.
