Two members of Congress call for federal investigation into Hope Florida charity money
Two Democratic members of Congress are calling on federal healthcare agencies to investigate Gov. Ron DeSantis’ administration’s decision to divert $10 million from a settlement with a Medicaid contractor to the state’s Hope Florida charity.
U.S. Reps. Kathy Castor of Tampa and Darren Soto of Orlando wrote that federal authorities should “investigate whether or not the $10 million settlement scheme violates federal law” or federal rules and regulations.
“Federal law requires that Medicaid proceeds be used solely for health services authorized by law and for the benefit of those served by Medicaid,” they wrote Thursday.
The letter was sent to Dr. Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services, and Juliet Hodgkins, the acting inspector general for the U.S. Department of Health and Human Services.
“We received the letter and are reviewing it for appropriate action,” a spokesperson for the acting inspector general said in a statement.
Spokespeople for the Centers for Medicare & Medicaid Services did not respond to a request for comment Friday.
The request to the federal agencies increases the scrutiny on one of the DeSantises’ top initiatives.
DeSantis said this week that the state’s actions involving the Hope Florida charity were “appropriate” and “advanced the core policies of the state of Florida.”
But Republican state Rep. Alex Andrade of Pensacola said state officials committed federal crimes, including money laundering. Four former federal prosecutors told the Herald/Times that Andrade could be on strong legal ground.
The $10 million was part of a $67 million settlement the state reached with the Medicaid giant Centene last year after the company overbilled for prescription drugs. The company also reached settlements with at least 20 other states.
In the Florida settlement, the state’s Agency for Health Care Administration directed Centene to donate $10 million to the Hope Florida Foundation, a charity created by the state to carry out first lady Casey DeSantis’ initiative to move Floridians off of government services.
Within days, the foundation’s director gave $5 million each to two nonprofit organizations, including one overseen by the CEO of the Florida Chamber of Commerce.
Those organizations then sent at least $8.5 million to a political committee overseen by DeSantis’ then-chief of staff, James Uthmeier. The political committee was created to fight last year’s ballot initiative that would have legalized recreational marijuana.
The donation to the Hope Florida Foundation was by far the largest in its history. Neither the donation nor the broader settlement with Centene were made public until last month, when the Herald/Times and Republican lawmakers began investigating the unusual transactions.
Under state law, legal settlements that state agencies reach with companies must be deposited into accounts the Legislature can oversee.
Settlements involving Medicaid funds are further restricted. The monies must be placed in the state’s Medical Care Trust Fund, with a portion owed back to the federal government.
Federal taxpayers fund most of Medicaid, which provides health care primarily for children, pregnant women and disabled low-income Floridians.
“Any unlawful diversion of Medicaid dollars in Florida means that the state is less able to provide services to our neighbors who rely on Medicaid and support the providers who serve them,” Castor and Soto wrote.
DeSantis called the $10 million a “cherry on top,” saying it was a charitable contribution separate from and in addition to what Centene owed state and federal taxpayers. The top lawyer for the Agency for Health Care Administration later said that only $57 million was potential Medicaid-related damages.
But Medicaid experts said that reasoning was flawed, and a copy of a draft 2022 settlement offer — which does not mention Hope Florida — was for the identical $67 million.