Florida Democratic Reps Urge Federal Probe of $10M Medicaid Fund Diversion

Two Democratic members of Congress, Reps. Kathy Castor and Darren Soto, have called for a federal investigation into Florida's alleged diversion of $10 million in Medicaid settlement funds to the Hope Florida Foundation, a charity linked to First Lady Casey DeSantis. The funds, originating from a $67 million settlement with Centene over Medicaid overbilling, were reportedly transferred from the charity to political nonprofits that used the money to campaign against a marijuana legalization ballot initiative. The lawmakers assert that federal law mandates Medicaid funds be used strictly for authorized health services benefiting Medicaid recipients, and they urge agencies including the Department of Health and Human Services and Centers for Medicare & Medicaid Services to examine potential violations and Medicaid fraud. Florida Governor Ron DeSantis defends the state’s actions as appropriate and aligned with state policies, while critics, including a Republican state representative, have accused officials of committing federal crimes such as money laundering. This controversy has drawn bipartisan attention due to the potential misuse of Medicaid funds for political purposes rather than healthcare services. Federal authorities have acknowledged receipt of the investigation request and are reviewing it for appropriate actions.