Federal Lawmakers Call for Medicaid Fraud Investigation Into Florida Anti-Cannabis Political Group

Two U.S. Representatives from Florida — Democratic Reps. Kathy Castor and
Darren Soto — are calling on the federal government to launch a Medicaid
fraud investigation into the Florida Agency for Health Care Administration
and political groups that last year campaigned against the state’s
adult-use cannabis legalization initiative.

In a letter sent last week, the lawmakers called on the U.S. Department of
Health and Human Services Inspector General and the Center for Medicare &
Medicaid Services to investigate a legal settlement between Florida and the
state’s largest Medicaid managed care operator, Centene, which the
lawmakers believe was “inappropriately diverted to unrelated political
committees,” including the Hope Florida Foundation, which was founded by
Florida First Lady Casey DeSantis, wife of Gov. Ron DeSantis (R).

The letter tracks a series of settlements, payments, and donations that
started with a settlement related to Centene overbilling Florida’s
taxpayers and resulted in the company sending $10 million to Hope Florida,
which dispersed the funding into political committees in a manner that
“appears to run afoul of federal law,” the lawmakers wrote.

“As members of the U.S. House Energy and Commerce Committee that provides
oversight of Medicaid, we can assure you that Congress is very focused on
waste, fraud, and abuse of Medicaid dollars. Any unlawful diversion of
Medicaid dollars in Florida means that the state is less able to provide
services to our neighbors who rely on Medicaid and support the providers
who serve them.” — Excerpt from the letter

“Medicaid is a federal/state partnership, and the federal government may be
entitled to recoup funds from the legal settlement and improperly diverted
funds as well,” the lawmakers wrote in the letter.

House Republicans say they want to root out waste, fraud, and abuse in
government? Here’s their opportunity.
@RepDarrenSoto and I are calling for a federal investigation into a shady
$10M diversion of Medicaid funds in FL — money that was meant to help
families afford health…

— U.S. Rep. Kathy Castor (@USRepKCastor) May 15, 2025

Florida voters ultimately rejected the constitutional amendment to legalize
adult-use cannabis — the amendment required 60% support to pas,s but fell
short with just under 56% of the vote.