FHA Applauds U.S. Senator Mel Martinez for Bill to Protect LIP

Mar 07, 2007
By: Rich Rasmussen

IMMEDIATE RELEASE
March 7, 2007

 

FHA Applauds Senator Martinez’s Bill to Protect Florida’s Hospitals from $4.6 Billion Medicaid Cut

Tallahassee – The Florida Hospital Association (FHA) applauds Florida Senator Mel Martinez (R) for introducing legislation to protect $4.6 billion in Medicaid funds for Florida’s hospitals.  The legislation seeks a two-year moratorium on the implementation of a proposed Centers for Medicare & Medicaid Services (CMS) rule that, if approved, would cut hospital payments by more than $932 million a year.

“This legislation is welcome news to Florida’s hospital community,” said Wayne NeSmith, President of the Florida Hospital Association.  “Senator Martinez’s bill prevents a financial tidal wave from overcoming our state’s hospitals.  The CMS proposal would devastate our healthcare system if allowed to become law and we are grateful for his commitment to protect our patients and the communities we serve,” said NeSmith.

FHA has met with members of the Florida Congressional Delegation to provide input on the impact the CMS rule would have on Florida’s hospitals.  An analysis by FHA found that $4.6 billion in Medicaid payments (over a five-year period) would be prohibited under the proposed rule.  Last year, the Legislature gave final approval to a Medicaid reform plan that created a Low Income Pool (LIP) program to reimburse hospitals for specific patient populations served and critical services provided to the community.  Florida received approval for the LIP program by CMS and the proposed rule may have a direct impact on the LIP program and an indirect impact on Medicaid reform in Florida.

FHA is a Tallahassee-based association, which advocates on behalf of Florida’s hospitals and health systems.

Click [Here] to view Sen. Martinez’s Press Release

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