Worried about the future of a program that funnels money to hospitals, Florida has asked federal officials for another two weeks to reach agreement on continuing the states Medicaid managed-care pilot.
The controversial pilot, which requires most Medicaid beneficiaries in five counties to enroll in managed-care plans, was scheduled to expire Sunday. But the state Agency for Health Care Administration sent a letter to federal Medicaid officials on Friday, seeking a 14-day temporary extension.
The letter, posted on AHCAs website, indicates that the sticking point is future funding for what is known as the Low Income Pool (LIP) program. That $1 billion-a-year program, which was included in the pilot, funnels additional money to hospitals and other types of health providers that serve uninsured and poor patients.
AHCA said in the letter that it learned last week the federal government was looking at the possibility of ending such funding pools as of December 2013, which would result in a substantial reduction of LIP funding.
The state Medicaid agency said it was surprised by the news and wanted the temporary extension of the pilot while the federal Centers for Medicare & Medicaid Services makes a decision about the LIP issue.
We are disappointed that CMS would choose to make such a material change at the last minute, Roberta Bradford, AHCAs deputy secretary for Medicaid, wrote in the letter. This temporary extension will ensure continued service delivery to Medicaid recipients while the state awaits CMS decision.
It was not immediately clear early Monday whether federal officials had responded to the states request.
Florida is seeking a three-year extension of the pilot program, which started in 2006. It was initially scheduled to expire June 30, but AHCA officials requested --- and received --- a temporary extension until July 31 to allow further negotiations.
The pilot has been controversial because it requires most Medicaid beneficiaries in Broward, Duval, Baker, Clay and Nassau counties to enroll in HMOs or other types of managed-care plans.
But hospitals also have made continuing the LIP program a top priority as the state has moved forward with seeking the extension.
AHCA also faces a Monday deadline for submitting a proposal to the federal government for a statewide program to enroll Medicaid beneficiaries in managed-care plans. Lawmakers approved that concept this spring as they sought to hold down spiraling Medicaid costs.
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