Rick Scott preps for possible government shutdown amid Medicaid standoff

Enmeshed in a budgetary standoff over federal health care dollars, Florida Gov. Rick Scott told state agencies Thursday to single out their most pressing needs and make a list of services that must salvaged in case of a government shutdown in July.

Florida’s legislature left Tallahassee this month without agreeing to an annual budget, hung up by dueling visions for how to care for the poor.

Mr. Scott, a Republican, wants the Health and Human Services Department in Washington to renew more than $1 billion in federal funding for a program that compensates hospitals that care for the uninsured, including the poor and illegal immigrants.

The program is set to expire this summer, though, and HHS thinks expanding Medicaid under Obamacare is a more efficient way to make sure Florida’s poorest residents can access care.

“While we have asked the federal government to reconsider funding the federal Low Income Pool program, we must assume their non-answer is a ’no,’ ” Mr. Scott told state agencies.

Mr. Scott has sued over the perceived arm-twisting and asked congressional Republicans to back him in the fight.

The standoff has left him in a tough position back home, as the Republican-controlled legislature returns for a special session on the budget and remains split over a path forward.

The state Senate backs expanding Medicaid to more than 800,000 residents, while the House does not.

HHS says it still needs a formal proposal from Florida and insists their decision will not be tied to whether Florida or similarly situated states expand Medicaid to people making 138 percent of the federal poverty level.

Under the Affordable Care Act, the federal government pays for 100 percent of the expansion until 2016 before scaling back its contribution to 90 percent in 2020 and beyond.

Mr. Scott said his state taxpayers would still be on the hook for $5 billion over a 10-year window, and he fears the state Senate will not back down during budget talks.

“Therefore, we are also requesting your agency prepare a list of critical state services our citizens cannot lose in the event Florida is forced into a government shutdown on July 1st,” he said.

Mr. Scott said he is particularly worried about school funding for the coming year. A resolution on health care, meanwhile, may have to wait.

“I believe the debate on how to increase access to health care while lowering cost and improving quality is an important one to have,” Mr. Scott said. “However, it will need to be much longer and more thoughtful than we have time to accommodate during a budget special session.”