| | | State scan | CMS is close to approving a Florida plan worth nearly $8 billion to boost Medicaid payments to providers in the state, ending a long-pending request that had prompted a lobbying blitz from lawmakers, hospitals and conservative groups. The so-called direct payment program, run by Florida’s Agency for Health Care Administration (AHCA), is designed to close the gap between Medicaid payments and the actual cost of care. The Medicaid funding flows through a mechanism known as state-directed payments, a fast-growing Medicaid tool that lets states steer extra money to providers by using state or local funds to draw down on federal matching dollars. → CMS has estimated that state-directed payment programs would cost $145 billion this year, a 16 percent increase from 2025. Critics, including some Republicans on Capitol Hill, argue the arrangements inflate federal spending. The Paragon Health Institute, a prominent conservative group, has called it “legalized money laundering.” Meanwhile, hospitals in Florida say the direct payment program “helps hospitals maintain services like labor and delivery and mental health care that otherwise could be too expensive to administer.” But, last year, Republicans in Congress voted in their signature domestic policy law to curtail the payments. Some states, including Florida, rushed to get proposals in before those limits took effect. Florida’s request — about $7.9 billion, more than double its prior $3.4 billion program — stands out for its size. → Two weeks ago, Florida’s health agency received “contingent approval” from CMS, according to a state Legislative Budget Commission document dated Tuesday. AHCA Deputy Secretary for Medicaid Brian Meyer told a panel of Florida state lawmakers earlier this week he expected the approval to “come any day.” The decision came almost a year after Florida submitted its application to regulators, a long wait time that prompted a wave of advocacy: Several Florida Republican lawmakers on Capitol Hill pressed CMS to approve the state’s direct payment program application, Roll Call reported earlier this year. In February, a collection of conservative groups including the Pacific Research Institute also wrote to CMS Administrator Mehmet Oz, arguing that there is “no plausible programmatic basis for the delay” in approving Florida’s plan. |