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1994.09.15 : Florida Health Reform Plan

Contact:  Anne Verano     (202) 690-6145
Thursday, Sept. 15, 1994                     


                 FLORIDA HEALTH REFORM PLAN APPROVED

     HHS Secretary Donna E. Shalala today announced approval of
Medicaid waivers authorizing Florida to implement a demonstration
program offering affordable health care coverage to 1.1 million
currently uninsured citizens.

     The new program, "Florida Health Security," will provide
premium discounts to provide private health insurance to eligible
low-income families, either directly or through employers. 

     The FHS program will be administered separately from the
state's traditional Medicaid program.  The waivers approved today
will also enable Florida to expand the use of managed care for its
Medicaid program. 

     Secretary Shalala praised the FHS program as "a creative plan
offering health insurance for low and moderate income families who
have often been priced out of the existing American health care
system."

     The FHS will use a managed-competition model to provide health
care coverage for uninsured Floridians with gross income at or below
250 percent of the federal poverty line.

     The program will offer a standard benefit package for which
participants' premiums will be at low levels to encourage maximum
participation.

     The FHS will be administered by the state's Agency for Health
Care Administration with 11 Community Health Purchasing Alliances
serving regions of the state.

     "The new program will test the extent to which government
assistance will encourage employers to provide coverage for
employees and dependents in a voluntary model," said Bruce C.
Vladeck, administrator of the federal Health Care Financing
Administration.

     He described the FHS program as "an innovative strategy for
bringing quality health care services to people who are sometimes
not well served by the current system."

     Individuals in the FHS will be eligible to enroll in either
indemnity or managed-care health plans called Accountable Health
Partnerships.

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EDITOR'S NOTE: The Health Care Financing Administration, which
administers the Medicare and Medicaid programs, helps pay the
medical bills of 67 million Americans. HCFA's fiscal year 1994
budget is nearly $250 billion.