Florida?s Hospitals Applaud Legislative Action to Fund Low Income Pool Program

Over the weekend, legislative leaders reached agreement on the value of continued state investment in the Low Income Pool (LIP) program and agreed to fund LIP with an appropriation of $81 million.  This state investment will be added to the more than $723 million in local tax support that is used to draw down more than $1.1 billion in federal funds.  LIP is funded by a combination of local, state, and federal funds, providing over $1.8 billion to address Florida’s healthcare needs.  LIP is a critical component that assists hospitals in funding the more than $2 billion uninsured patients served annually. 

“The hospital community in Florida applauds the Legislature for funding LIP.  We believe they recognize the tremendous contribution hospitals make in providing care to our state’s growing uninsured population,” said Wayne NeSmith, President of the Florida Hospital Association.  The LIP funds are used to provide additional Medicaid payments for hospitals that meet selected criteria developed by the statutorily created LIP Council.  The Council is made up of representatives from counties, taxing authorities, and hospitals.  “With LIP fully funded, we can now focus on the continuation of PIP in an attempt to avoid a $350 million cost shift to hospitals and health insurers,” said NeSmith.