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Low Income Pool Letter of Agreement on Behalf of Low Income Pool Charity Care Program and Directed Payment Program Letter of Agreement on Behalf of Region B With State of Florida Agency for Health Care Administration for FY 2026-27
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BRIEF OVERVIEW
Two Letters of Agreement (LOA) with the Florida Agency for Health Care Administration (AHCA) are presented for approval.
The annual Directed Payment Program Letter of Agreement (DPP LOA) provides direct supplemental payments to eligible public and private entities that provide inpatient and outpatient services to Medicaid managed care recipients. Hernando County LPPF (Local Provider Participation Fund) serves as the Intergovernmental Transfer (IGT) Provider to transfer funds to certain Medicaid providers.
In the Low Income Pool Letter of Agreement (LIP LOA), Hernando County LPPF on behalf of the Local Income Pool Charity Care Program serves as the IGT to transfer Medicaid funds to hospitals for that portion of hospital charges reported to AHCA for which there is no compensation other than restricted or unrestricted revenues provided to a hospital by local governments or tax districts.
In July, Hernando County’s LPPF Ordinance was updated to include permissible uses of the assessment. This funding can now fund all “Medicaid payments,” which include "other supplemental payments" like the LIP program. The LIP provides supplemental funding to eligible hospitals and other providers that furnish uncompensated care to uninsured and low-income individuals.
In prior years the Non-Ad Valorem Assessment for the LPPF would be approved during the budget process. Due to the State waiting for final federal approvals, these rates are not available at this time and will not be included in the budget process. Because there is a statutory deadline of October 1 for completion of the DPP and LIS LOA, the State has asked that IGT Providers approve placeholder agreements in the amount of $1.00. Once the rates h...
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