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TALLAHASSEE (CBSMiami/AP) —  In the battle over federal hospital funds, the Obama administration says no mediation is needed despite Florida Governor Rick Scott’s request for it.

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The administration said the have already engaged in ongoing discussions with Florida.

In court documents filed Tuesday, federal health officials said they talked with Florida as recently as Monday and that the discussions are ongoing and have been productive.

The Obama administration also said there is no basis for mediation because “(Secretary Sylvia Burwell) has already stated definitively that she will not deny a LIP (low-income pool hospital funds) extension based on the State’s failure to expand its Medicaid program.”

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“Mediation is unlikely to accelerate, and may well delay, (the Centers for Medicare and Medicaid Services) and Florida’s ongoing efforts to arrive at terms for a LIP extension,” the Obama administration argued in its motion.

Scott is suing the administration, alleging they are withholding federal hospital funds because Florida won’t expand Medicaid. The administration wants Florida to expand Medicaid, but says it will not deny the funds based on the state’s Medicaid decision. However, federal health officials will not give the state any hospital funds for those who would receive insurance if the state expanded Medicaid. The Florida House strongly rejected a Medicaid expansion compromise bill from the Senate during a special session Friday.

The administration has temporarily agreed to extend the funds for two more years but at a much lower price. But Scott’s office says they want a final agreement.

“Sadly, the Obama Administration continues to delay any final agreement on funding for the low income pool. The state is continuing to request this issue be immediately resolved by any means possible,” said spokeswoman Jackie Schutz.

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