Gov. Scott Considers Special Session Over HHS Funding Drama
The standoff between Florida lawmakers and Federal health officials continues, with the US Department of Health and Human Services continuing its pledge to cut off funding for a popular state healthcare program if Florida does not agree to expand its Medicaid program under the auspices of the Affordable Care Act. Gov. Rick Scott (R) on Tuesday declared he may call a special session of the state legislature to address the $1.3 billion hole that the termination of the Low Income Program (LIP) would create. The state House and Senate remain divided over how best to handle the shortfall with only 10 days left in the regular session. Florida senators held a workshop on Tuesday to consider how to help hospitals if the Federal government does end the LIP funding. According to Senate President Andy Gardiner, the state would have to provide $600 million to offset the loss.
Texas Gov. Greg Abbott (R) issued a press release claiming the Federal government’s position in this matter violates the Supreme Court decision that made Medicaid expansion under Obamacare voluntary: “In NFIB v. Sebelius, 26 States secured an important decision from the Supreme Court protecting States against coercion by the federal government. The Supreme Court ruled that the Constitution prohibits the federal government from threatening to withhold billions in Medicaid funding from States that do not accept Obamacare’s massive expansion of an already broken and bloated Medicaid program.”
What Happens Next
The battle is still in its early stages and it is unclear how it will proceed. All three branches of government are involved, with the Obama and Scott Administrations at loggerheads, the Florida legislature debating possible paths forward, and an imminent lawsuit that could challenge the Federal government’s ability to influence states. The most plausible possible outcomes include Florida continuing without LIP funding, the state expanding its Medicaid program, Federal authorities relenting and reauthorizing LIP without expansion, or a judge putting an end to the situation.
What It Means For Small Business
The newfound revenue shortage in the state budget has negative implications for all Florida taxpayers and users of healthcare services. The funding gap is equivalent to $65 for every state resident, and filling it would not be easy. More directly, many small businesses across the Sunshine State are involved in healthcare, either through direct patient services or more indirectly, and could see changes to how much they are paid. This week, Tennessee and Kansas received warnings that they would not be getting more Federal funding for low income healthcare programs unless they expanded their Medicaid systems.
Additional Reading
The LIP debate has attracted media coverage from many sources, including the Miami Herald, the Orlando (FL) Sentinel, the Florida Times-Union, the Palm Beach (FL) Post, the Florida Trend, the Gainesville (FL) Sun, and Kaiser Health News.
