by Steven Carr


FHA Member Alert

Dear FHA Member,

Yesterday we wrote to you to call your attention to a CMS informational bulletin, seeking to enforce the Agency’s interpretation of laws governing hold-harmless agreements in the context of Medicaid programs funded through provider taxes. Following that email, we have learned that CMS has communicated with AHCA that CMS would be a “Financial Management Review” (FMR) on Florida’s use of Local Provider Participation Fund (LPPF) revenues as the source of the nonfederal share for the current Florida Directed Payment Program (DPP). CMS communications with AHCA are below:

1. Engagement Letter

2. Document and Information Request Revisions

The FMR is consistent with a previous AHCA communication with CMS regarding the DPP program. When CMS approved Florida’s year-2 preprint for the DPP program, the Agency explained in the approval packet that it would be auditing the state’s program. CMS will begin the review the week of March 6, and the Agency is likely to seek details from the state, local governments, and participating providers.

Based on the documents the CMS sent to AHCA, the focus of the FMR is clearly on redistribution agreements. As noted in our member alert yesterday, we believe CMS’s efforts are based on misreading relevant statutes. We will continue our advocacy to defend the state’s DPP program.

If you have any questions please do not hesitate to contact me.

Thank you,

Mary C. Mayhew

President & CEO

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