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The dispute stems from a program that is designed to help pull down more federal money to go to hospitals.
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The federal government requires every state to recover money from the assets of dead people who, in their final years, relied on Medicaid for long-term care. Critics want the practice to stop.
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For a decade, Florida lawmakers have debated whether to expand Medicaid under the Affordable Care Act. Advocates are trying to circumvent the legislature and take the issue directly to voters.
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The state Agency for Health Care Administration website reports that 4.79 million people were enrolled in January, down from 4.86 million in December.
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The proposal would remove certain services given to patients, in return for a higher reimbursement check from the federal government.
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While more Medicaid beneficiaries have been purged in the span of a year than ever before, enrollment is on track to settle at pre-pandemic levels.
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The Biden administration is requiring states give CHIP beneficiaries 12 months of continuous coverage, even if families don't pay monthly premiums. State lawyers say premiums are needed for expansion of coverage signed into law last year.
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Because Florida has chosen not to extend Medicaid eligibility to more uninsured adults, entrepreneurs and health equity advocates are coming up with solutions for those facing medical bills they cannot afford.
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Florida is one of 10 states where the Affordable Care Act's expansion of Medicaid for low-income adults has not been implemented.
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Florida and the nation broke records for signups. Expanded financial assistance and the ongoing Medicaid unwinding contributed to the spike.
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The decision does not end the case, as the revised lawsuit with additional plaintiffs will continue. But it will push back consideration of an injunction and class certification.
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December's numbers show that more Florida kids are losing Medicaid than any other state except one.