Florida Governor’s Fight Over Medicaid Expansion Takes New Turn

Florida Gov. Rick Scott (R) on Friday outlined new steps he’s preparing to take in his standoff with the Obama administration over expanding Medicaid.

Scott wrote a letter to hospital executives on Friday asking them to submit proposals for how they can share profits in order to fund a low-income pool that would give hospitals money for care they give to uninsured people.

Scott has sued the administration, arguing the federal government is withholding the funds in an effort to force the state to expand Medicaid under ObamaCare. Scott opposes that expansion.

The governor argues the shared profits from insurers would be an alternative to federal funds for hospitals.

The administration counters that Florida is free to expand Medicaid or not, and that the decision on the low-income pool funding will be made regardless of whether the state expands Medicaid.

In an April 14 letter to Florida, however, the administration also said the low-income funding should not be used to cover costs that would otherwise be covered by the Medicaid expansion.