LIP Deal Struck As Budget Talks Continue

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TALLAHASSEE (CBSMiami/NSF) - Lawmakers have agreed on a formula to divvy up about $2 billion in local, state and federal funding for hospitals, resolving an issue that helped derail the regular spring legislative session and forced lawmakers to return to Tallahassee for a rare June budget session.

The deal finally appears to end the legislative debate over the Low Income Pool program, which provides funding to hospitals and other health-care providers that care for large numbers of low-income patients.

The federal government is reducing the so-called "LIP" program from $2.2 billion in the current budget year, which ends June 30, to $1 billion next year.

The legislative plan will use state money to draw down other federal funds to boost payments to all hospitals for Medicaid services in an effort to offset that drop.

"It's important, though, that we provided some stability in the health-care system for hospitals to understand that, yes, Low Income Pool is going to change, but we're going to make a financial commitment on the state standpoint to help in that transition, and that's what we did," said Senate President Andy Gardiner, R-Orlando. "Once that was done, I think that's a huge step forward."

Budget negotiations continue between Senate Appropriations Chairman Tom Lee, R-Brandon, and House Appropriations Chairman Richard Corcoran, R-Land O' Lakes. The two are trying to finalize agreements on state spending for economic development, education and the environment.

The News Service of Florida contributed to this report.