Umbrage Taken By Both Sides
Florida Gov. Rick Scott (R) met with Health and Human Services Secretary Sylvia Burwell Wednesday to request that the agency extend Low Income Pool (LIP) funding for hospitals. Scott came away empty-handed, possibly a signal that any proposal not including Medicaid expansion would fall short of HHS’ standards. Notably, the meeting comes about a week after Scott filed a lawsuit accusing the HHS Secretary of trying to coerce Florida into expanding Medicaid, which he alleges violates the Supreme Court’s opinion in NFIB v. Sebelius. However, the lawsuit appears not to have played a role in the discussion between Scott and Burwell.
The heart of the dispute is the state’s decision not to expand the eligibility of its Medicaid program. Obamacare required states to expand their programs, but the Supreme Court ruled in NFIB that such a mandate was unconstitutional, affirming the right of each state to choose the parameters of its Medicaid program. However, Federal officials have been displeased with Florida and several other states not participating in the expansion, and Scott and his allies say HHS terminated LIP funding as a way of laying siege to the state budget until Florida complies. Scott further claims that action is unconstitutional.
“HHS knew our budget timeline and they did not act to keep the LIP program,” Gov. Scott said after the meeting. “The federal government should not just completely cut off a federal healthcare program for low income Floridians that has been working for years. That is just wrong for Florida families.”
Senate Democratic Leader Arthenia Joyner responded with a press release, slamming what she called “Republican Governor Rick Scott’s never-ending attacks on the federal government to excuse his own failings.”
The legislative battle has led to a cycle of accusation and recrimination between members of the two sides of the issue. The Florida House adjourned early, largely out of frustration with the Senate, leading the Senate to file a lawsuit with the Florida Supreme Court demanding the House’s return. Rep. Matt Gaetz (R), an attorney, insulted the case on Twitter, writing, “The lawsuit reads like it was researched and drafted by Sen. Joyner and spell checked by Sen. Bullard.” Joyner then issued a formal statement suggesting Gaetz was a racist. The state Supreme Court then ruled that the House should have continued working, but refused to force the body to reconvene, prompting both sides to declare victory.
What Happens Next
With both sides firmly entrenched, it is unclear who will blink first. Federal officials do not appear to want to renew LIP funding, and the Scott Administration does not want to participate in Medicaid expansion.
What This Means For Small Business
The immediate effects of the suspension of LIP funding are having the most dramatic effect on small businesses involved in the healthcare sector. However, there are larger issues at play with potentially wide-ranging circumstances. The gridlock in Florida’s legislature threatens to hold back real reforms that would benefit the Miami business community. Also, the suspension of an important program by Federal authorities raises troubling concerns about the balance of power between the Federal government and the states.
Additional Reading
Other news media outlets covering the Florida situation include the Orlando Sentinel, the AP, Bloomberg News, the Tampa Bay (FL) Times, The Hill, the Washington Times, and the South Florida Sun Sentinel.
