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Florida’s $433 million insurance surprise

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Florida just got an unpleasant $433 million surprise in the form of unpaid insurance reimbursements, owed jointly with the federal government.

11 private companies that have been running the state’s public-health insurance program for low-income and disabled people since 2014 are owed the money. In 2014, the state privatized its Medicaid programs, with the aim of saving money. But then the companies were underpaid for two years, state officials said.

It is unclear whether the experience will lead the state’s political leadership to reconsider its Medicaid privatization.

An error  in how the state classified Medicaid beneficiaries was cited in the very expensive mistake.

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