Friday, May 8, 2015
First, Florida Governor Rick Scott sued the federal government for halting federal LIP funding for the state. Now, according to The Hill, he's turning to state hospitals to figure out how to replace federal LIP funds with a make-shift state program.
Here's one governor who really doesn't want to expand Medicaid.
As we previously explained, HHS told Florida that it would lose federal Low Income Pool, or LIP, money, designed to pay back hospitals for uncompensated care for low-income individuals, because HHS deemed Medicaid a better way to pay for low-income health care. But that would require Florida to expand Medicaid under Obamacare. HHS's move prompted Governor Scott to sue HHS, arguing that the threat to halt LIP funding amounted to coercion to expand Medicaid in violation of NFIB v. Sebelius. (It doesn't. NFIB said that the ACA's structure, which allowed HHS to halt all a state's Medicaid funding if a state declined to expand Medicaid to reach those at or below 133% of the federal poverty line, was unduly coercive. Losing LIP funding is a far cry from that structure. And that's even assuming that HHS's move to halt Florida's LIP funding is a kind of penalty for Florida's decision not to expand Medicaid (and it's not at all clear that it is).)
Perhaps recognizing that the suit was a nonstarter, now Governor Scott is looking inward, to Florida, to fund its own LIP-like program. He's asked state hospitals to submit proposals for sharing profits to cover the costs of a state-run program.