Florida Cuts Projected Medicaid Therapy Spending by $980 Million in Fraud Crackdown
Updated
Updated · Fox News · Oct 8
Florida Cuts Projected Medicaid Therapy Spending by $980 Million in Fraud Crackdown
3 articles · Updated · Fox News · Oct 8
Summary
$980 million in projected annual Medicaid spending on behavioral therapy was stripped out in Florida, lowering the fiscal 2026-27 estimate to $2.88 billion from $3.86 billion.
More than 220 providers were terminated and over 260 faced payment restrictions or suspensions after investigators found suspicious billing, including claims for more than 24 hours of services in a day.
Florida said the savings came from fraud enforcement, managed care and utilization controls, with its strategy focused on blocking suspect claims before payment rather than recovering money later.
Since January 2026, AHCA has issued more than 1,000 adverse enrollment decisions, conducted 400 site visits and used identity-screening tools and moratoriums to keep high-risk providers out.
The push lands amid broader federal scrutiny of Medicaid fraud, including Robert F. Kennedy Jr.'s payment freeze on California and Minnesota and a widening debate over state oversight.