Florida

Florida Medicaid Plans Seek Raise from State Amid Losses

Insurers participating in Florida's new Medicaid managed care program are feeling the sting of nearly $550 million in losses through 2014 and want the state to increase their rates.

But Gov. Rick Scott is also feeling the sting of losing major federal funding for hospitals and doesn't want to use any more state money for the Medicaid program.

The two are locked in intense negotiations that could undermine the fledgling program, which went statewide last year under Scott.

Insurance companies are asking for a $400 million raise and a 12 percent increase for rates that would go into effect Sept. 1. But state health officials say the increase would undermine the small savings the program has generated.

Copyright AP - Associated Press
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