Gov. Rick Scott is trying to corral costs for the state’s Medicaid managed care program. He’s directing state officials to audit contracts between participating hospitals and insurers.
Florida privatized Medicaid in 2011 expecting to cut the program’s overall cost by allowing greater competition. But now it seems the deals struck between hospitals and insurers are out of control. Governor Rick Scott has dispatched state health officials to audit insurers and hospitals that haven’t disclosed their contracts. There’s a ceiling for how much providers can charge: 20 percent more than the Medicaid rate. But state officials say some agreements have expanded to double that rate. Scott is directing the state health agency to modify or terminate contracts that exceed the legal limit, and warns offenders could be kicked out of the managed care.
