U.S. Rep. Kathy Castor (D-Tampa/St. Petersburg, FL) released the following statement regarding the CMS letter to the State of Florida on granting transitional LIP funding.

“CMS made plain today that low-income pool monies paid for uncompensated care will be reduced substantially in future years due to the availability of health services through an expansion of Medicaid. This is a wake-up call to Gov. Rick Scott and Florida legislators that the transition must begin right away. 

“CMS advised that Medicaid expansion could provide an estimated ‘2 billion annually to Florida hospitals over and above funding through sources such as the LIP.’ Failure to begin the transition will leave Florida in the lurch in future years. The best way for Florida to ensure its citizens receive affordable health care is through coverage not uncompensated care pools, which is simply a check written to hospitals. CMS also noted that Florida should use LIP to improve access to the doctor’s office for our neighbors, by reimbursing doctors and providers at adequate rates under Medicaid. A federal court ruled in December 2014 that the State of Florida was causing harm to children served by Medicaid because it was knowingly denying access to medical care by intentionally keeping reimbursement rates low. These low payment rates for Medicaid providers directly impacts access to care for the most vulnerable among us.

“The Florida Legislature now has an opportunity to avoid Gov. Scott’s charade of a threatened government shutdown. Time would be best spent planning for transition to Medicaid coverage to ensure affordable coverage for our neighbors across Florida.” 

Joan Alker with the Georgetown Center for Children and Families says, “CMS action drastically cuts Medicaid LIP by 55 percent next year and 75+ percent the following year and thereafter.”

U.S. Rep. Castor added:  “The Governor should take no solace in CMS agreeing to another transition period. In the end, CMS was urged to act because of Gov. Scott’s ideological plotting that would only hurt Florida neighbors; refusal to transition away from LIP, even though he knew for years this program was ending; and his ineptitude that once again left hospitals and the health of Floridians in the lurch. This is the final transition. Now the state must work to increase payment rates for providers who treat many of our neighbors and should take the same action as many of our sister states, like Indiana and Pennsylvania, to expand coverage for our neighbors who need it the most, which also expands access and stabilizes insurance rates for us all.” 

U.S. Rep. Castor serves on the Health Subcommittee in the U.S House of Representatives and was instrumental in the previous extension of the Florida Low Income Pool. 

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