Florida expands TEACH training funds but KidCare expansion stalled by federal dispute

The Senate Health Policy Committee heard a mixed progress report from AHCA on workforce funding and children’s coverage: the TEACH training program is running and expanding, but efforts to broaden KidCare eligibility under House Bill 121 are on hold amid federal regulatory disagreement and litigation.

AHCA Deputy Secretary for Medicaid Brian Meyer told the committee that Senate Bill 7016 and related appropriations established the TEACH program with a recurring $25 million General Revenue appropriation to offset clinical training and education costs for multiple student types. For the 2024–25 period AHCA expended about $6.8 million across 59 parent organizations and 229 unique facility locations, reimbursing roughly 1,800 students for about 380,000 clinical hours.

“Signed‑up bill 7016… appropriated 25,000,000 in recurring GR funds to offset the cost of clinical training and education,” Meyer said, adding that rulemaking for the program will be finalized in October and the agency will submit the program report to the Legislature and Governor on Dec. 1.

GME and Section 1115 waiver friction Meyer described AHCA’s attempt to seek federal approval to maximize funding, including submission of a Section 1115 waiver in May 2025. He said CMS communicated a policy shift during 2024–25 that made approval of new 1115 workforce demonstrations unlikely, and that CMS expressed concerns about methodologies tied to utilization‑based payment. As a result, AHCA’s broader waiver to expand workforce funding and certain GME elements has been stalled.

KidCare (HB 121) implementation delay On CHIP expansion under HB 121, Meyer said AHCA submitted a waiver option after CMS indicated the requested change could not be implemented via a state plan amendment. CMS provided draft special terms and conditions that would have prevented CHIP disenrollment for nonpayment of premiums — a federal interpretation AHCA challenged in federal court. Meyer said the agency received special terms and conditions, sought an extension, and later filed additional litigation; CMS’s final rule (published Nov. 27) and subsequent developments mean implementation of the 300% FPL expansion has not moved forward.

“We got an approval with… that SDC that which we didn't agree with,” Meyer said, describing a compressed negotiation window and later litigation. He said the state continues to discuss alternative pathways with CMS and the Department of Justice to implement the Legislature’s intent but could not predict a firm timeline for resolution.

Why it matters: HB 121 would have expanded CHIP premium tiers and reduced gaps between CHIP and marketplace coverage; stakeholders told the committee families are falling into coverage gaps while the state and federal agencies litigate rules over continuous eligibility and disenrollment practices.

What advocates and members asked: Several senators pressed AHCA for data on how many children were disenrolled or remain uninsured due to the delay; Meyer said that specific counts were not immediately at hand but AHCA would coordinate with the Florida Healthy Kids Corporation to produce the figures. Advocate Melanie Andrade Williams told the committee that an estimated 67,000 additional children became uninsured during the Medicaid unwind and urged rapid action to restore coverage.