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FORT LAUDERDALE (CBSMiami/AP) — Insurers participating in Florida’s new Medicaid managed care program are asking the state to increase their rates.

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The move comes after nearly $550 million in funding losses through 2014.

But Gov. Rick Scott is also feeling the sting of losing major federal funding for hospitals and doesn’t want to use any more state money for the Medicaid program.

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The two are locked in intense negotiations that could undermine the fledgling program, which went statewide last year under Scott.

Insurance companies are asking for a $400 million raise and a 12 percent increase for rates that would go into effect Sept. 1st. But state health officials said the increase would undermine the small savings the program has generated.

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