Senator Seeks to Protect $4.6 billion in Medicaid Funds for Florida Hospitals

U.S. Senator Mel Martinez (R-FL) today introduced a bill to protect $4.6 billion dollars in Medicaid funds for Florida hospitals. Under a rule proposed by the Centers for Medicare & Medicaid Services (CMS), Florida’s hospitals stand to lose as much as $932 million annually in federal and state matching funds, totaling an estimated $4.6 billion over five years.

“CMS is trying to enact a rule that will financially crush our hospitals. The impact will be severe and devastating,” said Martinez. “This proposal will ensure Florida’s hospitals can continue providing services to the most vulnerable families seeking care.”

Florida has already received CMS approval to use these funds; if this rule were approved it would negatively impact Florida’s Medicaid Reform Plan.

Senator Martinez’s bill seeks to place a two year moratorium on CMS’s implementation of this proposed rule so that further study could take place to determine the extent of any negative impact on states – particularly those with Medicaid or State Children’s Health Insurance Programs.

Due to the uncertainty over the impact of the rule if implemented, the Florida Legislature will be in a difficult position when determining budget amounts for Medicaid. To move forward with implementation without further review could have a negative impact for Florida and other states currently operating a successful program.