The five-year renewal of Florida's section 1115 Medicaid waiver will help hospitals offset uncompensated care costs, proving to be credit positive especially for safety-net hospitals, according to a Moody's Investors Service report.
The waiver renewal will increase federal funding for the low-income pool by $893 million. Hospitals that treat a high percentage of uninsured or underinsured patients such as safety-net hospitals and children's hospitals will benefit the most from the waiver extension.
Hospitals will only benefit, however, if they pay matching intergovernmental transfer funds through a local government or special taxing district that permits them to access the funds.
The extension of Florida's Medicaid waiver may be positive for hospitals in other states with 1115 waivers facing expiration, according to Moody's.
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