Two Democratic members of Congress representing Florida are asking the federal government to investigate what they describe as “potentially unlawful diversion” of millions in state Medicaid funds via a group with ties to Gov. Ron DeSantis (R). The money was used to fight against a citizen ballot initiative, vehemently opposed by DeSantis, that would have legalized marijuana for adults.
Reps. Kathy Castor and Darren Soto sent a letter on Thursday to the Department of Health and Human Services (HHS) inspector general as well as Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services, formally requesting they initiate a Medicaid fraud investigation.
“The diversion of Medicaid dollars requires immediate investigation,” the two lawmakers wrote. “These are proceeds that rightfully belong to state taxpayers to serve the citizens who rely on Medicaid, including children, pregnant women, neighbors with disabilities and those served by long-term care.”
The two lawmakers, members of a House committee with oversight of Medicaid, emphasized that Congress is “very focused on waste, fraud and abuse of Medicaid dollars.”
“Any unlawful diversion of Medicaid dollars in Florida,” they wrote, “means that the state is less able to provide services to our neighbors who rely on Medicaid and the providers who serve them.”
The letter follows allegations that a $10 million donation from a state legal settlement was improperly made to the Hope Florida Foundation, which later sent the money to two political nonprofits, which in turn sent $8.5 million to a campaign opposing the proposed marijuana legalization ballot measure, Amendment 3.
Notably, the Hope Florida Foundation was founded by Florida First Lady Casey DeSantis, the governor’s wife.
“On October 17, Secure Florida’s Future donated $2 million to Keep Florida Clean Inc., a Political Action Committee (PAC) controlled by Governor DeSantis’s then-chief of staff James Uthmeier that was created to campaign against Amendment 3,” the lawmakers’ new letter says. “Governor DeSantis strongly opposed Amendment 3. Days later, Secure Florida’s Future sent Keep Florida Clean Inc. an additional $1.75 million.”
“On October 22, the Hope Florida Foundation wired $5 million to the 501(c)4 nonprofit Save Our Society from Drugs that proposed spending the ‘grant’ on ‘developing and implementing strategies that directly address the substance use crisis facing our communities,’” it continues, detailing the alleged impropriety. “On October 23, the next day, Save Our Society from Drugs donated $1.6 million to Keep Florida Clean Inc. Over the coming days, Save Our Society from Drugs donated an additional $3.15 million to Keep Florida Clean Inc.”
“While there are limited financial disclosure requirements associated with 501(c)4 organizations,” the lawmakers said, “records appear to show that a total of $8.5 million from the Centene settlement with AHCA went from the Hope Florida Foundation to the Amendment 3-focused Keep Florida Clean, Inc. PAC, the same PAC that also donated funding to the Republican Party of Florida and the Florida Freedom Fund. ”
“Hope Florida had raised only about $2 million during its three years of existence,” they pointed out, “but in one fell swoop, received $10 million from a Medicaid settlement, which was immediately funneled through other nonprofits to a PAC directed by the Governor’s Chief of Staff.”
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