Feds Urge Florida to Require Private Medicaid Plans to Spend 85% on Care

Federal health officials are urging Florida legislators to require 85 percent of private Medicaid plan funds to go toward patient care, according to a Florida Independent report.

State and federal officials are negotiating a new three-year deal on the Medicaid Reform Pilot program. The Patient Protection and Affordable Care Act requires that 80 to 85 percent of the money collected by private insurers be spent on healthcare services, and in this case, the federal government is requesting Florida set the rate at 85 percent, the report said.

Florida lawmakers who opposed the request did not offer an alternative plan but noted that Texas' Medicaid overhaul plans currently do not have this requirement. The state will wait to hear more information from the federal government on the Medicaid Reform Pilot program before coming to a decision, the report said.

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