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Rep. Ted Deutch

Rep. Ted Deutch

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Governor Scott One Step Closer to Handing Medicaid Over to For-Profit HMOs

Posted: 04/ 1/11 12:18 PM ET

Republicans in Tallahassee are on a fast track towards decimating health care in Florida. Yesterday, the Florida House Budget Committee passed a proposal to eliminate $50 million for cancer research. I drafted this measure while in the State Senate to increase the cigarette tax by a dollar, generating $1 billion in health care funding and at least $50 million for lifesaving cancer research. This legislation garnered bipartisan support because cancer is an issue with no political boundaries, tragically touching the lives of most Americans.

Cancer research is now in the Republican crosshairs because they need to plug the holes they are blowing into the Medicaid system relied on by three million low-income, poor, elderly, and jobless Floridians. Simultaneously advancing in the legislature is a bill implementing statewide the for-profit Medicaid HMO experiment that has failed my constituents in Broward County. There, HMOs have tried to make a quick buck off Medicaid by bouncing families from insurance company to insurance company, restricting access to care, and even disenrolling high-risk pregnant women.

In what world does the governor believe we can save money by funneling taxpayer dollars to for-profit HMOs? Further, this reckless privatization plan endangers billions of dollars in annual federal Medicaid funding for Florida, posing tremendous long-term risk to taxpayers. Doctors and health providers who serve Medicaid patients know that letting HMOs siphon off some of the system's already insufficient funding will only make things worse. The bill will also increase uncompensated care taken on by hospitals, and other providers by eliminating coverage for "medically-needy" Floridians and capping state Medicaid funding.

These same battles are playing out in Washington. Rather than end billion-dollar taxpayer subsidies for oil companies or close offshore tax loopholes, Republicans slashed billions in funding for research into cancer, Alzheimer's, and other diseases at the National Institutes of Health, National Science Foundation, and other scientific powerhouses. Apparently, Tallahassee is using the same playbook that emphasizes cuts at all costs -- even at the expense of basic health care, life-saving research, and scientific advancement that can lead to a cure for cancer.

Washington Republicans are soon expected to unveil plans drastically cutting Medicaid, despite the fact that per capita, Medicaid spending grows at half the pace of private-sector health spending. It is true Medicaid is straining state budgets, but treating a symptom of high unemployment will not cure the disease. Since the financial crisis, stubbornly high unemployment has led more and more families to seek last resort care through Medicaid. Perhaps if Republicans in Tallahassee and in Washington focused more on boosting economic growth, creating new jobs, lowering insurance premiums, and bringing a shred of economic security back to middle class families, the American people -- and our state budgets -- would be better off.

 

Follow Rep. Ted Deutch on Twitter: www.twitter.com/RepTedDeutch

 
 
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11:42 PM on 05/09/2011
"In 1997 SCOTT was forced out of being CEO of Columbia/HCA amid a federal billing FRAUD investigation that resulted the company paying a $1.7 BILLION PENALTY. Scott, left with $10 MILLION in severance and $300 MILLION worth of stock & options." But now he wants my coworkers & myself -who work VERY HARD w/ students to better their lives- to contribute from our very LOW pay to our even LOWER retirement!!! :(
HUFFPOST SUPER USER
demilieu
Texas liberal...with reservations
06:12 PM on 04/03/2011
HMO's, talk about a system where a bureacrat can decide what, if any, treatment a patient can get, HMO's are the worst. I don't think most doctors will choose to work for an HMO. I remember my primary care doctor visits under an HMO lasting about 10 to 12 minutes, total.
10:58 AM on 04/03/2011
"In what world does the governor believe we can save money by funneling taxpayer dollars to for-profit HMOs?" Minnesota did this with state run health care; adminmistrative costs went from 3% to 18%.
Of course, the insurance companies had sworn that they would be able to provide the services more economically.
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terry90
10:18 PM on 04/20/2011
well of course... the profits for the private health insurance cos. have to come from SOMEWHERE....
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OnTheOtherBeach
10:15 AM on 04/03/2011
Scott has one goal: to enrich himself by driving new business to Solantic. He says he doesn't control it any longer, but he sleeps with the new boss every night. The State legislature has to stop this guy.
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camelias and sweet tea
Small drinking village with a shrimping problem
10:23 AM on 04/03/2011
fanned.
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midwestgirl1960
08:49 AM on 04/03/2011
Private and for profit will always cost you more take a look at how well the City of Chicago did with letting a private company run there Parking meters in the city. It cost them 3 times more. FOR PROFIT should give you a clue!!!!
06:36 AM on 04/03/2011
scott and his crowd are the face of the new eugenics movement. they firmly believe that the human race can be divided into two subspecies...one deserving of their position of entitlement and the other to be exploited and then left to fend for themselves because they are "useless eaters".
"Truly I say to you, Because you did it to the least of these my brothers, you did it to me."
this quote comes to you from a non-believing member of the mediocrity (useless eater).
the class war IS being televised and is quite obvious when you start to recognize the double talk.
"PERSONAL RESPONSIBILITY", "PICK ONESELF UP BY THE BOOTSTRAPS" and the like are double talk for "WE'VE STOLEN EVERYTHING NOT NAILED DOWN" and you are on your own now.
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budanatr
US Expat in EU
03:45 AM on 04/03/2011
Representative Deutch, it is your responsibility and the responsibility of all Florida's elected officials to stop this man. You can see what he is doing and what he is doing is obviously corrupt. Start an investigation. Expose him. Put him where he belongs, in prison.

It is your responsibility to do this. The citizens of Florida are depending on you. All Americans are depending on you.

Make it happen. That is your job. That is what you were elected for.
Set an example for elected representatives everywhere.
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lolablev
09:29 PM on 04/02/2011
The repub's know absolutely nothing about what they are doing. They are on a rampage everywhere, cut here cut there. Pretty soon, we will have no county at all if this continues. I think I'm totally ready for that split between blue and red - I'm so thankful I live in Blue!
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healthcarenow
RN 4 blue Arizona
05:31 PM on 04/02/2011
the most dangerous entities to good and affordable healthcare are HMOs, Insurance, and Big Pharma.
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healthcarenow
RN 4 blue Arizona
05:22 PM on 04/02/2011
"In what world does the governor believe we can save money by funneling taxpayer dollars to for-profit HMOs?"...in his own world, he knows all about running HMOs...on the profit side. Of course it'll be harder to skim dollars and scam Medicaid now that he is Governor but I'm sure his buddies are taking care of it.
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William Maurer
My goal is to be Lord of Sandwich.
04:49 PM on 04/02/2011
There is a story on Gov Scott on "Crooks and Liars' web. He has ordered immediate cuts of 15% to group homes and social workers serving developmentally disabled citizens in group homes and in their homes. They include persons with Downs Syndrome, autism, cerebral palsy and other disabling diseases. One blogger said he then went to a Special Olympics function. Thanks to all you TeaBagger Patriots.
11:59 AM on 04/02/2011
The latest from Tea Party's Rick Scott: St. Pete Times: part 3

"Gov. Rick Scott, Solantic and conflict of interest: What's the deal?"

"Kenneth Gross, a Washington lawyer and a nationally recognized expert on ethics laws, said Florida is one of the few states where a spouse's investments don't "tag the public official with conflict."

"It's an area that's crying out for attention," he said.

Gross said Scott retains interest in Solantic despite putting it in his wife's revocable trust, where it can be withdrawn at will. He said Scott should have sold his interest in Solantic.

"He may not be in on the day-to-day running of the company and that's nice," Gross said. "But if he has ownership interest by virtue of a revocable trust, he maintains an interest in the welfare of the company."

By continuing to hold it, Scott shows "he thinks it's a viable, thriving business that will continue to make money for himself or his spouse," Gross said. '
03:55 PM on 04/02/2011
This doesn't bother Scott, or the SCOTUS for that matter. They are untouchable, the rules do not apply to them.
Scott is about to make a horrible decision that will gut medicaid and hurt the voters in Florida. But it will enrich Scott and his family and friends financially, so there really is not question about whether or not he will make it happen.
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HUFFPOST SUPER USER
William Maurer
My goal is to be Lord of Sandwich.
05:11 PM on 04/02/2011
Good writing Deb. Fanned
11:57 AM on 04/02/2011
The latest from Tea Party's Rick Scott: St. Pete Times: part 2

"Gov. Rick Scott, Solantic and conflict of interest: What's the deal?"

"But in Florida, nothing bars Scott from promoting policies that could benefit a company from which his family benefits financially.

• Scott supports bills that would move nearly 3 million Medicaid recipients into private managed care plans. Solantic accepts traditional Medicaid at only one location but it contracts chainwide with several private Medicaid plans. If passed, the law would dramatically increase Solantic's potential patient base.

Scott worked with Bowling when he was chief executive of the Columbia/HCA hospital chain and she was a marketing executive there. In 1997, Scott was forced out amid a federal billing fraud investigation that resulted in the company paying a $1.7 billion penalty. Scott, who left with $10 million in severance and $300 million worth of stock and options, was never charged with any wrongdoing.

Four years later, Scott used part of that wealth to start Solantic with Bowling. Scott was active in the company and on its board until January 2010, when he began his run for governor.

Charles R. Evans, a retired HCA executive who worked with Scott, now represents Scott's wife's trust. He also is chairman of the Solantic board. "
11:51 AM on 04/02/2011
The latest from Tea Party's Rick Scott: St. Pete Times: part 1

"Gov. Rick Scott, Solantic and conflict of interest: What's the deal?"

"If you have a $62 million investment, representing the biggest single chunk of your $218 million in wealth, and you put it in a trust under your wife's name, does that mean you're no longer involved in the company? Florida Gov. Rick Scott says it does.

Scott has aggressively pursued policies like testing state workers and welfare recipients for drugs, switching Medicaid patients to private HMOs and shrinking public health clinics. All these changes could benefit that $62 million investment, but Scott sees no legal conflict between his public role and private investments.

And, experts say, under Florida law he is correct.

A few days before he took office in January, Scott moved his shares in Solantic Corp., a chain of 32 urgent care centers, to the Frances Annette Scott Revocable Trust. Scott co-founded Solantic in 2001 and was involved in its operation until last year. His wife's trust now holds enough stock in the private company to control it.

By transferring the Solantic shares to his wife's trust, which is represented on the Solantic board by one of his former business associates, Scott maintains he is free from any possible conflicts.

"As I've told you, I'm not involved in that company," he said this week when asked why he didn't sell his shares.
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duvster
a legend in his own mind
11:26 AM on 04/02/2011
Every day Gov. Voldemort does something new to alienate another segment of Fl voters.
Tomorrow he will decare war on puppies and kittens.
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camelias and sweet tea
Small drinking village with a shrimping problem
10:25 AM on 04/03/2011
He is turning a beautiful state where people used to move to retire or just live in the Sun into a total disaster. What a shame..