President Donald Trump’s “Big Beautiful Bill” will cut $3.8 billion from Florida’s health care system, with that money primarily affecting Florida hospitals.
Brian Meyer, Florida’s Medicaid director, gave an update at the House Health Care Facilities and Systems Subcommittee.
The new law is making cuts to Medicaid, among other reforms. One of the major changes in Florida will be a cap on state-directed payments going to hospitals, with the changes setting that Medicaid cap at 110% of Medicare to more align the two rates, Meyer told lawmakers.
Five Florida programs are over that cap and currently receive $9 billion. That total will drop to $5.2 billion in state-directed payments by 2034-2035, Meyer told the group of lawmakers after facing earlier questions in the week about how children are being disenrolled from the Florida KidCare program for not paying their premiums.
The Hospital Directed Payment Program is currently being paid $8.1 billion for 2025-26. That program will face a $3.5 billion cut by 2034.
Other programs facing decreases by 2034 are the Physician Supplemental Payment Program, with a $234 million cut, the Public Hospital Physician Program, at $9 million, and two Florida Cancer Hospital Programs for $56 million and $17 million.
“What this provision does is any state directed payments that are above 110% of Medicare beginning in 2028 will start stepping down annually 10% a year until you get to the 110% of Medicare threshold. We currently have five state directed payment programs that are above 110% that will need to be stepped out,” Meyer said.
“Depending upon where they are with respect to the percent of Medicare, some will get to that 110% cap sooner. Others will take more years to get there at a 10% annual reduction.”
The House subcommittee, which met as the upcoming Legislative Session’s committee week began, is focused on the access and affordability of health care.
–Gabrielle Russon, Florida Politics
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