TALHASSEE – Two Congressional Democrats are asking federal healthcare agencies to investigate the DeSantis administration’s decision to divert $10 million from a settlement with Medicaid contractors to the state’s hopeful Florida charity.
Tampa’s Cathy Caster and Orlando’s U.S. Rep. Kathy Caster writes that federal authorities should “examine whether the $10 million settlement system violates federal law” or implement federal rules and regulations.
“Federal law requires that Medicaid proceeds be used for the benefit of law-approved health services and those whom Medicaid serve,” they wrote Thursday.
The letter was sent to Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, and Juliet Hodgkins, a representative inspector for the U.S. Department of Health and Human Services.
“We have received the letter and reviewed it for proper action,” a spokesman for the proxy inspector said in a statement.
A spokesperson for the Centers for Medicare and Medicaid Services did not respond to a request for comment Friday.
Requests for federal agencies will increase scrutiny with one of Gov. Ron Desantis’ top initiatives.
DeSantis said this week that the state’s actions, including Florida’s charitable wish, were “appropriate” and “advanced Florida’s core policies.”
However, Pensacola Republican Rep. Alex Andredo said state officials committed federal crimes, including money laundering. Four former federal prosecutors told The Times/Herald that Andrade could be on a strong legal basis.
The $10 million was part of a $67 million settlement that reached the major Medicaid centerne last year after the state over-rented for prescription drugs. The company has reached settlements in at least 20 states.
In the Florida settlement, the state’s Department of Healthcare has directed the Center to donate $10 million to the Hope Florida Foundation, a charity created by the state to implement First Lady Casey DeSantis initiative to move Florida initiatives out of government services.
Within days, the foundation’s directors gave two nonprofit organizations $5 million each, including oversight by the CEO of the Florida Chamber of Commerce.
These organizations then sent at least $8.5 million to a political committee overseen by James Uthmeier, then head of staff at Desantis. The Political Committee was created to fight last year’s voting initiative legalizing recreational marijuana.
The donation to hope to the Florida Foundation has been much larger in its history. The broader settlement with the Center was also not made public until last month when Times/Herald and Republican lawmakers began investigating the unusual deal.
Under state law, legal settlements that state agencies reach with businesses must be left in explanations that can be overseen by Congress.
Settlements that include Medicaid funds are further limited. Money must be placed in the state’s medical trust fund, with some being paid to the federal government.
Federal taxpayers fund most of Medicaid, which provides health care primarily to children, pregnant women, and low-income Floridians with disabilities.
“The illegal transformation of Medicaid dollars in Florida means that states rely on Medicaid and cannot provide services to neighbors that support providers who serve them,” writes Castor and Soto.
Desantis called the $10 million “Top On Top,” and said it was a charitable contribution in addition to that Centrene owed state and federal taxpayers. Later, the agency’s top lawyer for healthcare institutions said that only the potential $57 million potential Medicaid-related damages.
However, Medicaid experts said the reasoning was flawed and a copy of the draft 2022 settlement offer does not mention Hope Florida – the same $67 million.
