by Jim Saunders
The News Service of Florida
Florida lawmakers Friday blocked a proposal that could have led to tens of millions of dollars in Medicaid rate cuts for hospitals.
The Agency for Health Care Administration notified hospitals last month that they faced cuts unless they came up with $45 million in local funding to cover a Medicaid shortfall for the current fiscal year. Local funding is commonly used in Medicaid to help bring in more federal matching money.
But such cuts would require approval by a joint House and Senate panel known as the Legislative Budget Commission. Legislative leaders Friday did not include the issue on an agenda for a commission meeting this week.
House Appropriations Chair Denise Grimsley, a Sebring Republican who also chairs the commission, said the cuts would have come in addition to 12 percent Medicaid rate cuts that hospitals face during the upcoming 2011-12 fiscal year.
Grimsley said in a statement released through the House speaker’s office that “amounts to a considerable and unanticipated reduction, which causes me great concern.’’
House Health Care Appropriations Chair Matt Hudson (R-Naples) said he was concerned the local funding issue was not raised during the legislative session, which ended May 6.
Hudson said AHCA has other Medicaid money that can be used to cover the local funding shortfall. That other money stems from differences in how much was forecast for Medicaid and how much has been actually spent.
“I would encourage them to pay their claims promptly,’’ said Hudson.
AHCA Secretary Elizabeth Dudek raised the issue of the shortfall in a May 24 letter to hospitals. Initially, she required hospitals to come up with the local money by May 31, but extended that deadline to today after an outcry.
Shelisha Coleman, an AHCA spokeswoman, said in an email Friday afternoon that the agency had not received responses from hospitals or local money.
The local money is known as “intergovernmental transfers,’’ which are provided by entities such as hospital taxing districts. Hospital industry officials have said the $45 million in rate cuts would actually be deeper because they would also mean forgoing federal matching funds.