With state lawmakers debating putting Medicaid patients into managed care programs, Gov. Rick Scott canceled this week an $18 million Medicaid contract between MedSolutions and the Agency for Health Care Administration for outpatient imaging services.
The contract was one of hundreds that has been sitting on Scott's desk since hours after his inauguration, waiting for approval from his Office of Fiscal Accountability and Regulatory Reform. Scott signed an executive order Jan. 4 requiring that any contract worth more than $1 million be approved by the office.
Since instituting the freeze, Scott has released millions of dollars in contracts to pay for everything from transportation projects to weatherizing the homes of low-income Floridians.
Last week, Scott released a Medicaid contract with the company Paragard to pay for intrauterine devices used for birth control. The devices are available at county health clinics throughout the state. The governor allowed the deal to go forward only after reducing it from a three-year $4.5 million contract to a one-year $850,000 expense.
Here's the text of the "reason for denial" for the MedSolutions contract: "Beginning Fiscal Year 2005-06 through Fiscal Year 2008-09, the following proviso was inserted and continued in the General Appropriations Act: From the funds in Specific Appropriation XXX, the agency is authorized to implement a utilization management program for outpatient diagnostic services. To date, the agency never implemented a utilization management program for outpatient diagnostic services. Proviso language is only valid for one year. The last time the above-mentioned proviso was in the General Appropriations Act was Fiscal Year 2008-09. It is uncertain if the agency would still have authority to implement such a program. The agency is unable to provide an independent study or other supporting data which would validate significant savings to the Medicaid program if such a $18,000,000.00 program were implemented."