Florida: A Bellwether For Medicaid Expansion

Governor Rick Scott is one of a handful of national Republicans threatening not to expand Medicaid eligibility under President Obama's health law. How the dance with Washington could play out


He was a "frequent flyer" -- a patient with multiple health problems who gets admitted to the hospital repeatedly. It was usually because he hadn't taken his medicine correctly, if at all. When he left the hospital 10 days earlier, he told his physician that he wouldn't have problems filling his prescriptions, because he had Medicaid. But when he arrived at his local drug store, it wasn't so easy.

"I was really trying to take my medication, Doc," he told me, his voice distorted by a stroke he had suffered two years earlier. But the pharmacist had told him that he first had to call his managed care plan -- and despite multiple phone calls and episodes of being placed on interminable hold, he never had been able to straighten things out. He hadn't been able to get to his follow up doctor's visit, either, because he had lost his apartment and was living with a relative in a distant neighborhood.

Predictably, his lungs filled up again with fluid, and now he was back, hospitalized for reasons that could have easily been avoided.

Preventable hospitalizations, such as those of my patient, are routine here in South Florida, which has both an abundance of low-income, disabled residents and a barebones safety-net health system that has grown increasingly byzantine over the years. In the wake of the U.S. Supreme Court's ruling on the Affordable Care Act (ACA), Florida's governor, Rick Scott, declared that the state won't expand Medicaid eligibility, a move that will leave 1.8 million low-income Floridians uninsured. Compared to these folks, the low-income women, children, and disabled Floridians who do qualify for Medicaid are relatively lucky -- at least they have some insurance. But they live in a state with a Medicaid program that is far from user-friendly, and doesn't guarantee consistent care.

"It's a very unstable system," said Leslie Rosenstock, a former social worker who moved to South Florida from Virginia five years ago with her disabled, visually impaired adult son to be near family. "We never would have moved here if we had known how hard it would be."

Consumer health advocates now worry that the Supreme Court's decision may have created an opportunity for Florida to negotiate with the federal government in a way that would make the system even more complicated for many patients. They describe a scenario in which the federal Centers for Medicare and Medicaid Services grants Florida permission to further privatize Medicaid in exchange for the state's allowing more low-income people to enroll in the program, as outlined by the ACA. Florida's Republican legislators and governor have long endorsed expanding an unconventional pilot program that gives HMOs and other private insurers unprecedented power to decide the amount, duration, and scope of medical services Medicaid patients can receive. The federal Department of Health and Human Services, which pays more than half of Florida's Medicaid tab, hasn't yet approved the expansion proposal, which advocates fear the state may use as a bargaining chip.

'We never would have moved here if we had known how hard it would be.'

"There's been speculation that there may be attempts to set up some sort of tradeoff," said Greg Mellowe, policy director for the Florida Community Health Action Information Network.* "Florida is asking for permission to do things that Medicaid doesn't normally do."

As a low-tax state, Florida has long tried to run Medicaid on the cheap. It now ranks fourth from the bottom (ahead of California, Georgia, and Alabama) among states in the amount spent annually per enrollee, a number that has declined steadily over the years. (In absolute terms, though, due to Florida's weak economy, overall state spending on Medicaid has increased as more residents become eligible due to poverty).

Efforts to "reform" and "modernize" the system by capping payments to private groups -- and granting those groups leeway in determining the extent of a beneficiary's services -- took off under former governor Jeb Bush, whose administration gained approval from the federal government to launch a pilot program in five counties. The program began in 2006, and at the time , the state boasted that competition between private organizations would "inspire innovation and efficiency." The program also mandated that the groups would provide the state with a detailed explanation of how they spend their payments. "The whole premise was that this was going to be an opportunity for the HMOs to give us an accounting of what's happening with this capitated payment," said Karen Woodall, executive director of the Florida Center for Fiscal and Economic Policy, a Tallahassee-based research group. "But we've yet to see any of this required data."

While outcomes data have been sparse, stories abound of how the pilot HMOs have made it more difficult for patients to get care. A Georgetown University Health Policy Institute analysis of Medicaid patients and health providers in pilot counties found that a majority thought the changes made the program more complicated, with significantly more paperwork. The Georgetown researchers also described numerous cases of patients being shifted between various HMO plans, each with different rules, and having more problems getting needed health care. They also found that there was no evidence to date that the programs were more cost-efficient.

Presented by

Erin N. Marcus is a general internist and writer, based in Miami. The reporting of this article was supported by a grant from The Ford Foundation.

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