Will Florida protect Medicaid amid federal cuts?

Stock image via Adobe

For years, state leaders have sparred over how to funnel money through the complexities of Medicaid financing. Eventually, they agreed on a system where the dollar (mostly) follows the patient, allowing hospitals and other medical providers to recoup at least some of the costs of treating Medicaid and uninsured patients.

It’s not perfect, but it’s kept the doors open for health systems that care for millions of Floridians.

That delicate balance is now at risk. Congress began its budget reconciliation process on Feb. 25, and Medicaid is in their crosshairs. Any changes will inevitably trickle down to Florida, so will state lawmakers’ response be nimble enough to avoid leaving federal dollars on the table?

Sen. Jason Brodeur has filed SB 1060, which would set up a Joint Legislative Committee on Medicaid Oversight. This panel would be tasked with figuring out how to keep Florida’s Medicaid program financially stable while balancing rising costs and the never-ending quest for better health outcomes.

After a brutal redetermination process that lasted a year, Florida’s Medicaid program is running as lean as it ever has, and there’s not much left to trim before cuts start hurting actual patients. At the same time, hospitals are already getting reimbursed pennies on the dollar to treat Medicaid patients, so the real drama will be whether lawmakers can get through session without slashing reimbursement rates even further.

One thing to keep an eye on: reauthorization of the Hospital Directed Payment Program. Since 2021, it’s been a critical lifeline for hospital funding, helping offset the Medicaid shortfall. If lawmakers drop the ball on that, things could get ugly fast.

Between upheaval in Washington and the usual turmoil in Tallahassee, it’s clear that Medicaid funding will be a major factor in the weeks to come.

The 60-day Legislative Session begins Tuesday and runs until May 2.