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Florida Gov. Rick Scott to sue Obama administration over healthcare funding

By Amy R. Connolly

TALLAHASSEE, Fla., April 17 (UPI) -- Florida Gov. Rick Scott announced plans to sue the Obama administration for trying to bully the state into expanding the Medicaid program.

Scott, a Republican, said the federal Centers of Medicare and Medicaid Services is threatening to pull $2.1 billion of critical low-income healthcare funding in an effort to pressure him into agreeing to the Obamacare Medicaid expansion. Scott argued the U.S. Supreme Court ruled the president cannot force the Medicaid expansion on states.

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"In fact, the court ruled that the president could not use 'gun to the head' approaches in pushing for Medicaid expansion," Scott said in a written statement, citing a 2012 Supreme Court ruling that said the federal government couldn't compel states to expand Medicaid coverage for low-income residents.

Scott said the president is not only violating the law, but is also threatening "poor families' access to the safety net [of] healthcare services they need."

The CMS sent a letter to state officials this week that made an explicit link between low-income healthcare funding, called the Low Income Pool or LIP, to the Medicaid expansion. The LIP program, which expires June 30, pays hospitals and other providers for healthcare services for low-income or uninsured patients. Scott has been trying to negotiate an extension of LIP and the accompanying $2.1 billion it brings to the state's hospitals.

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CMS officials said LIP should not be expanded because low-income patients would get cheaper medical care through the Medicaid expansion.

"Medicaid expansion would reduce uncompensated care in the state, and therefore have an impact on the LIP, which is why the state's expansion status is an important consideration in our approach regarding extending the LIP," a letter from CMS acting director Vikki Wachino states.

The White House blasted the governor for putting politics ahead of the large number of low-income people who would be eligible for the expanded Medicaid program.

"It's difficult to explain why somebody would think that their political situation and their political interest is somehow more important than the livelihood and health of 800,000 people that they were elected to lead," Josh Earnest, the White House press secretary, said.

The showdown between Scott and the administration underscores the divide in Florida's Legislature and between state Republicans. The state House opposes expanding Medicaid, while the Senate approves it and has already approved a private-sector version of Medicaid.

The suit, which has yet to be filed, is the latest step in Scott's lengthy fight with the federal government against healthcare money. Florida was the lead state in the initial Constitutional challenge of the Affordable Care Act.

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