Gov. Scott Opens Latest Front In Obamacare Battle
Florida Governor Rick Scott (R) announced Thursday that he plans to sue to Federal government for withholding funding for a healthcare program. Scott alleges authorities in the Obama Administration are denying $2.2 billion in funding for the state’s Low Income Pool because of the Sunshine State’s refusal to participate in Medicaid expansion. The 2012 Supreme Court decision in NFIB v. Sebelius overturned a provision in the Affordable Care Act that required states to expand eligibility for their Medicaid programs. According to Scott, by cutting off funding due to the state’s decision not to expand, Federal authorities are violating the high court’s order.
The issue has generated a flurry of letter writing between officials on both sides of the issue. Sen. Marco Rubio (R-FL) and five Republican members of the House of Representatives sent a letter Wednesday calling for Medicaid expansion to be treated separately from the renewal of the Low Income Pool. The letter states that Federal officials “should not destabilize, eliminate or hold these programs hostage to an expansion decision” and says Florida should be treated the same as states that expanded Medicaid eligibility. CMS Acting Director Vikki Wachino, a high-ranking official in the US Department of Health and Human Services (HHS), wrote in a letter this week that “Medicaid expansion would reduce uncompensated care in the state, and therefore have an impact on the LIP, which is why the state’s expansion status is an important consideration in our approach regarding extending the LIP.” Florida Medicaid Director Justin Senior responded to Wachino’s letter, asking for the two programs to be evaluated separately.
What Happens Next
Without re-authorization, LIP funding expires in June. The incipient legal challenge faces an uncertain future, and both the Scott and Obama Administrations are likely to use it to continue their longstanding debate over Medicaid expansion. Federal and state authorities have been at odds since the 2012 case, with HHS pushing all non-expansion states to implement the potentially expensive program.
What It Means For Small Business
Small businesses will face varying effects from the Federal government’s suspension of a multi-billion dollar program. Healthcare providers could see a rapid cutoff in payments for some of their patients, and other businesses will see continuing effects. Florida House Speaker Steve Crisafulli (R) warned the program’s termination would immediately endanger hospitals and other medical providers in the state. More broadly, the Florida situation shows that the long-running drama over implementing Obamacare is far from over and continues to have real implications for independent business owners.
Additional Reading
The story has attracted heavy news media coverage this week, including from the AP, the Miami Herald, the Florida Times-Union, National Review, Politico, the Orlando (FL) Sentinel, Kaiser Health News, the Jacksonville (FL) Business Journal, and the South Florida Sun Sentinel.
