Florida Governor Sues Obama Administration Over Health Funding

Date: April 30, 2015

Says Administration Ignored State’s Concessions In Obamacare Duel

Florida Gov. Rick Scott (R) recently filed a lawsuit against the Obama Administration contending that the Federal government is using Low-Income Pool (LIP) funding as a bargaining chip to coerce the state into expanding Medicaid. Obamacare is at the heart of the debate, as the Affordable Care Act (ACA), as the law is formally known, requires states to make their Medicaid programs open to more people and pay a portion of the costs. The Supreme Court declared that provision of the law unconstitutional in NFIB v. Sebelius, freeing states from the Federal coercion and giving them the choice whether or not to participate. Gov. Scott contends that authorities with the US Department of Health and Human Services (HHS) have no right to withhold funding from the LIP, which has traditionally been considered separately from Medicaid. HHS says it has broad discretion over LIP funding. Florida Attorney General Pam Bondi said in a statement, “The president, once again, is overstepping his authority, this time by trying to force Florida to expand Medicaid through the Affordable Care Act.” Medicaid expansion is a contentious issue in several other states as well. The Louisiana state House and Senate again rejected Medicaid expansion in committee votes Wednesday, with the Senate Health Care Committee voting 5-3 and the House’s equivalent voting 9-7.

What Happens Next

The debate is occurring both between the Scott and Obama Administrations, as evidenced in the Florida lawsuit, and within Florida’s legislature, which has been at loggerheads over the best course of action. State Senate President Andy Gardiner (R-Orlando) said in a letter to House Speaker Steve Crisafulli (R-Merritt Island), “You adjourned the Florida House of Representatives in contravention of express provisions of the Florida Constitution. … I respectfully request that you reconvene your chamber to finish the important work of the people of Florida.” In a written response, Crisafulli said, “I understand that you are angry that the House concluded our business. … I told you that the House could not pass Obamacare expansion. It’s not something that I can force them to pass … This is a matter of the House exercising its constitutional duty to represent those who elected us.”

What This Means For Small Business

Independent businesses play an important part in this high-stakes debate. “Small business owners are important stakeholders in this fight, not just as taxpayers, but as major contributors to Florida’s economy,” NFIB’s Florida Executive Director Bill Herrle recently said. “Expanding Medicaid will deal a substantial blow to our state’s economy. Small business owners are the engine of our economy. They’ve spent their lives growing their businesses, creating jobs and giving back to our communities, and expanding a budget-busting Medicaid program will no doubt jeopardize this progress.”

Additional Reading

The Florida Medicaid fight has drawn the attention of many outlets, including the Miami Herald, the Tampa Bay (FL) Times, the Orlando (FL) Sentinel, the AP, Reuters, the Orlando (FL) Business Journal, the Palm Beach (FL) Post, Naples (FL) Daily News, The Hill, Modern Healthcare, and the Washington Examiner.

NFIB Resources

NFIB recently launched an ad campaign to educate people about this issue.

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