House Health Care Budget Subcommittee members spent over two hours Wednesday questioning representatives from the Florida Agency for Health Care Administration over funds given to the Hope Florida Foundation.
The legislators, led by chairman Rep. Robert Alexander “Alex” Andrade, R-Santa Rosa, raised concerns about the ambiguity over the process of the Hope Florida Foundation receiving $10 million from a settlement between ACHA and Centene, a corporation providing managed care and health care solutions.
Following a detailed overview of the updates and changes to ACHA’s new contract for Medicaid managed care in Florida by Brian Meyer, the deputy secretary for Medicaid within ACHA, representatives asked questions surrounding the updates.
Andrade first questioned a section within the new plan relating to Hope Florida, believing that including Hope Florida within the updated managed care plan clashed with a Florida statute prohibiting an agency from favoring one managed care plan over another.
“Can you help me understand exactly how that clause in the contract doesn’t run afoul with Florida statute and the directives the Legislature’s given the agency,” Andrade asked.
Meyer maintained that the preferred enrollment would be associated with graduating a member from Medicaid and that the program was not tied to an entity like Hope Florida.
This led Andrade to focus on the $10 million payment to Hope Florida Foundation.
“Are you telling me that ACHA does not have the details about its own interactions with this nonprofit that is such a massive priority in the state’s largest contract,” Andrade asked.
Meyer explained that within the contract, the reference to Hope Florida is a component of the managed care plans’ ability to serve members.
“Integration with that program is just one component of our expectations of our health plans to serve the needs of its members and help individuals achieve economic self-sufficiency,” Meyer said.
Harris, appointed secretary of ACHA in February, stepped in, attempting to clarify Hope Florida’s involvement in ACHA.
“Hope Florida is a separate government-run program that various state agencies participate in, including the Department of Children and Families, Agency for Persons with Disabilities, Department of Juvenile Justice,” Harris said. “That is separate and apart from the foundation, which is a direct support organization authorized by the Legislature to support the mission of DCF.”
Harris then explained that Centene identified that claims were or weren’t paid out in a manner that met the contractual terms of the Medicaid plan and that they owed the state of Florida money.
“OK, I cannot find a record of this $10 million anywhere or when it was transferred to Hope Florida’s foundation,” Andrade said. “Do you have any understanding of when that money was transferred and why from GR to a DSO for a separate agency?”
“When Centene paid us the monies to the owed to the state,” Harris said. “Per the settlement agreement, those monies were deposited into trust fund accounts that the department has consistent with the statute.”
The settlement agreement Harris referred to was the $67 million settlement Centene paid to the state last year. Harris said that the $10 million was a “direct contribution” to the Hope Florida Foundation, not transferred from ACHA to Hope Florida.
Much of the questioning during the committee meeting rested on Harris and Meyer explaining the differences between Hope Florida, which operates in multiple state agencies, not just ACHA, and the Hope Florida Foundation, founded by Florida First Lady Casey DeSantis in 2021. This comes amidst Gov. Ron DeSantis’ efforts to add Hope Florida into state law.
Committee members questioned the legitimacy of the foundation and how much work was being done to help Florida citizens.
Andrade attempted to question Mallory McManus, the communications director for ACHA and also the registered agent of the Hope Florida Foundation, about the funds.
McManus maintained that she’d never served as the executive director of Hope Florida and was not present at the discussions of the settlements between Centene and ACHA.
Multiple committee members raised concerns over the legality of the settlement and the fact that the settlement was not disclosed to lawmakers.
A possible subpoena is on the table in the future, according to a statement by Andrade after the committee meeting. An update will be available as more details are offered.