Good Budget News: Medicaid Costs Reduced For Escambia, Santa Rosa

July 17, 2012

The amount of Medicaid costs passed on to Escambia and Santa Rosa counties has been reduced, according to Rep. Doug Broxson, R-Gulf Breeze.

Broxson said he received an email from the Florida Agency on Healthcare Administration (ACHA) revealing a marked decrease in Escambia County’s expected liability in total open Medicaid claims. The communication from Karen Zeiler, deputy Secretary of Administration for ACHA, stated the preliminary certification of Escambia County’s open Medicaid claims dropped to $4.2 million, down from a previously estimated $8.5 million.

Santa Rosa County’s $813,000 was reduced to $34,065.

““We worked extremely hard to convince the state to take a look at how they were calculating what they said we owed in back Medicaid payments,” said Escambia Board of County Commission Chairman Wilson Robertson. “We didn’t believe it fairly represented Escambia County’s liability and was essentially an unfunded mandate.”

The state mandated payments sent Escambia County scrambling to balance the upcoming fiscal year budget. The library systems was one of the first potential targets to save cash, but branch libraries were spared after public outcry.

The more than $4.3 million reduction in the Escambia County’s Medicaid liability refers only to the “backlog” of open Medicaid claims, which are to be paid out over a five-year period. Escambia County is estimating that numbers will mean a savings of approximately $1.2 million fiscal year 2012/2013 and just under $600,000 per year for the next four fiscal years. The payments do not include any current or future claims.

“We have notified each county with the good news and appreciate their hard work.  I would also like to thank AHCA for their effort as they spent thousands of hours to help soften the blow of past Medicaid bills for our counties.  This is what happens when leaders don’t shy away from controversy and work together towards a solution,” Broxson said.

Escambia and Santa Rosa counties have both joined a Florida Association of Counties lawsuit against the mandated payments.

Counties argue the Legislature violated part of the Florida Constitution that is aimed at making it harder for the state to pass along what are known as “unfunded mandates,” which increase costs for local governments. The constitution requires unfunded mandates to be approved by two-thirds of the House and the Senate — a threshold that was not met with the new Medicaid law.

Though he signed the law, Gov. Rick Scott ordered the Agency for Health Care Administration to meet with county officials across the state to try to resolve billing disputes. But a key part of the lawsuit alleges that counties commonly have received incorrect bills for such things as people who live in other areas of Florida or even out of state.

“Although counties are willing to pay their fair share for Medicaid services received by their residents, they cannot in good faith make payments for bills that are clearly erroneous and lacking support,” the lawsuit says.

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Written by William Reynolds · Filed Under News