Credit: Photo via Ron DeSantis/Facebook
A state-contracted Medicaid managed care plan paid $10 million to the Hope Florida Foundation, a direct-service organization affiliated with First Lady Casey DeSantis, the head of the state’s largest health care agency told legislators Wednesday.

Agency for Health Care Administration (AHCA) Secretary Shevaun Harris said a $10 million payment to the Hope Florida Foundation was part of a larger $67 million agreement the agency signed with Centene Health Plan, one of several managed care plans the state contracts with to provide health services to the poor, elderly, and disabled. The other $57 million went to the agency.

The $10 million payment was not immediately disclosed to the Legislature. Instead, the House discovered its existence from the October minutes from a Hope Florida Foundation meeting. Agency officials discussed the payment under questioning from members of the House Health Care Budget Subcommittee.

The scrutiny of Hope Florida comes amid speculation that Casey DeSantis may run for governor. Gov. Ron DeSantis has touted Hope Florida and when asked about the foundation recently, he asserted that a reporter was helping with a “smear” of the program.

Harris was secretary of the Department of Children and Families, not AHCA, when the agreement was reached.

She told House Health Care Budget Subcommittee Chairman Alex Andrade that Centene approached the state about improper reimbursements.

According to the Centene website, the company operates in Florida under the brands Sunshine Health, Wellcare, AmBetter Health, and the Children’s Medical Services Health Plan, which serves medically complex children.

She said an agreement had been reached whereby Centene returned the overpayments to the state. Harris said the money went into state trust funds and was properly accounted for.

Andrade then asked Harris how $10 million could “walk from AHCA’s bank account to Hope Florida’s DSO [direct service organization] last October?”

Harris replied: “Those funds were never given to the state. They were a direct contribution made from Centene to the foundation.”

Andrade, an attorney, continued to press, asking Harris whether AHCA required Centene as part of the settlement to make a separate $10 million payment outside the state’s accounting system.

Harris said she’s not an attorney and wasn’t involved in the settlement discussions.

“However, I know a lot of lawyers were involved in the drafting of the settlement agreement and I have to believe that all T’s were crossed and I’s dotted to ensure the authority was there,” she said.

Centene did not immediately respond to Florida Phoenix’s request for comment.

‘Stunning to me’

The Florida Phoenix obtained a copy of the agreement, signed by former AHCA Secretary Jason Weida (now Gov. DeSantis’ chief of staff), Chief Deputy Attorney General John Guard, Insurance Commissioner Michael Yaworksi, Department of Health Chief of Staff Cassandra Pasley, and Centene Corp. Executive Vice President, Secretary, and General Counsel Christopher A. Koster.

Andrade told reporters after the meeting that he was disappointed in some of Harris’ responses.

“To act as if this wasn’t state funds was stunning to me,” he said.

“The entitlement that it takes to act as if that this settlement was not a settlement related to the over-expense of state funds kind of shocks me. I don’t know what we can do but, obviously, at the very least we need more accountability on what that $10 million is being used for and how on earth AHCA felt justified in transferring those funds to a separate different agency.”

The reveal follows news reports about the Hope Florida Foundation, launched by First Lady DeSantis.

It is one of several financial matters involving AHCA that the subcommittee is examining.

The panel last month criticized overspending and financial mismanagement by AHCA, with a document showing the agency could face upward of a $965 million deficit. The Legislature thought it had addressed one of the overpayments when it gave the agency $160 million to settle a dispute with the federal government over supplemental Medicaid payments made to hospitals. The agency, though, ended up spending the money elsewhere, a mistake that the agency said occurred due to accounting errors.

During Wednesday’s meeting, Harris repeatedly stressed the difference between Hope Florida, which according to its website is a government initiative that serves as a connection point for collaboration between the public and private sector, faith-based communities, and nonprofits. Hope “navigators” work at agencies across state government with people seeking assistance in transitioning away from government benefits to economic self-sufficiency.

The Hope Florida Foundation is the not-for-profit direct support organization that assists Hope Florida.

Andrade and other members of the House panel spent the better part of a three-hour meeting pressing Harris, as well as Deputy Secretary for Medicaid Brian Meyer, on the details of the new statewide Medicaid managed care contracts — and about a requirement that contracted plans partner with the Department of Children and Families on its Hope Florida initiative.

Last minute invite?

Initially, Andrade pushed Meyer about the $10 million payment to Hope Florida Foundation and who made it. Meyer said he wasn’t prepared to answer the question. He said he was appearing before the committee on “relatively short notice” and, when his staff asked what the meeting was about, was told the requirements of the new Medicaid managed care contracts. Meyer said that was what he was prepared to discuss with the House budget panel.

“I think if there are other topics you want to discuss, maybe there is another time or individual to address those with.” Meyer said.

Andrade shot back: “Mr. Meyer, I believe that is a valid question to be asked here,” he said, continuing, “Are you telling me AHCA does not have the details of its own interactions with this nonprofit that is such a massive priority in the state’s largest contract?”

Mallory McManus, the former registered agent for the Hope Florida Foundation and a spokesperson for AHCA, issued a statement following the meeting criticizing Andrade.

“It’s concerning how little Representative Andrade understands about Medicaid, as demonstrated in his performative committee hearing today. He also purposely misconstrued the the structure and the nature of the Hope Florida program, which is shameful. AHCA is proud of our work serving Floridians particularly in helping people reduce government dependency and achieving economic self sufficiency.”

Florida Phoenix reporter Jay Waagmeester contributed to this story.

Florida Phoenix is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Florida Phoenix maintains editorial independence. Contact Michael Moline for questions: info@floridaphoenix.com. Follow Florida Phoenix on Facebook and Twitter.

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