February 21, 2025  – Significant changes to Florida’s Medicaid managed care system took effect this month, bringing adjustments to health plan contracts and a restructuring of service regions. The new system, which is expected to impact millions of Medicaid beneficiaries, is the result of an extensive contracting process initiated in 2023 and finalized last year.

The Florida Agency for Health Care Administration (AHCA) has introduced new contracts that will direct tens of billions of dollars in health care spending over the coming years. As of December, approximately 3 million people were enrolled in the state’s Medicaid managed care program, according to AHCA data.

Florida first mandated managed care enrollment for most Medicaid recipients in 2011 when lawmakers restructured the state’s system to streamline services and control costs. Since then, the state has undergone multiple rounds of contract negotiations, with this latest iteration bringing a notable reduction in service regions. Previously, the program was divided into 11 regions; under the new structure, that number has been scaled back to nine.

Under the revised system, eight health plans have secured contracts to provide medical managed care services. Additionally, two dental plans have been awarded contracts to handle oral health coverage for Medicaid enrollees.

The restructuring aims to improve efficiency and optimize the delivery of care, though the full impact of these changes remains to be seen. As the new contracts roll out, health care providers and Medicaid recipients across the state will be closely monitoring how these adjustments affect access to services and overall patient outcomes.