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09/29/2026

Florida Medicaid Health Care Alert

CMS Plan Transition from Sunshine to Molina

REMINDER: Effective October 1, 2026, the operation of the Childrenโ€™s Medical Services (CMS) Plan will move from Sunshine State Health Plan, Inc. to Molina Healthcare of Florida, Inc.

The Agency previously announced (Medicaid Health Alert) that effective October 1, 2026, the operation of the Childrenโ€™s Medical Services (CMS) Plan will move from Sunshine State Health Plan, Inc. (Sunshine) to Molina Healthcare of Florida, Inc. (Molina).

To ensure no disruption in current services and to support continuity of care (CoC), Molina will have a CoC period of up to 240 days (8 months). The CoC period covers services authorized by Sunshine Health and documented courses of treatment that are in effect and being delivered as of 10/1/2026 until the authorization, course of treatment, or CoC period ends, or until a new care plan is finalized and new services are authorized, whichever occurs first.

Regardless of contracting status, enrollees may continue seeing their current providers until May 31, 2027, or until their new care plan is finalized and ongoing services are authorized, whichever occurs first. Molina is required to reimburse non-participating providers at the rate they received for services rendered to enrollees prior to the transition for up to eight months, unless there is an agreement to an alternative rate.

For member questions regarding this transition, contact Molina Member Services at 1-800-262-0750. For provider questions regarding this transition, contact Molina Provider Services at 1-855-322-4076.

07/09/2026

CMS is proposing to create a new payment pathway for algorithm-driven diagnostic software, including AI tools, as part of its 2027 Hospital Outpatient Prospective Payment System and Ambulatory Surgery Center proposed rule, issued July 2.

The proposal marks CMSโ€™ first attempt to build a standardized payment structure for what it calls โ€œSoftware as a Medical Serviceโ€ โ€” clinical software that uses algorithms to analyze patient data and produce a diagnosis, risk score or treatment recommendation.
Six things to know:

1. CMS is renaming the category. The agency has referred to these products in past rulemakings as โ€œSoftware as a Service.โ€ It is now proposing to call them Software as a Medical Service, stating that the SaaS label risks confusion with generic cloud-computing terminology used outside healthcare.

2. The agency said it has been evaluating how to develop a comprehensive and consistent approach to SaMS payment for several years โ€œwith the novel and evolving nature of these technologies.โ€ CMSโ€™ outpatient payment methodology is designed around physical resources โ€” supplies, equipment, staff time โ€” rather than products whose value comes from a proprietary algorithm. CMS said that makes it difficult to set an accurate rate, and it flagged a separate concern about how some of these tools are sold, through subscription, license or per-use โ€œper-clickโ€ fees, which raises program integrity questions.

3. A new status indicator would flag these products for the first time. CMS is proposing to create status indicator โ€œO1โ€ and designate 36 Healthcare Common Procedure Coding System codes as SaMS. Of those, 21 would move out of standard clinical Ambulatory Payment Classification groups and into New Technology APCs, the payment track CMS typically reserves for new procedures that do not yet have enough claims data for a permanent home.

4. The proposal covers a range of AI-assisted diagnostics. Examples listed in the rule include AI analysis of retina images for disease detection, echocardiogram-based heart failure detection, coronary blood flow estimates derived from CT angiography, CT-based bone fracture risk scoring, eye-movement-based concussion assessment, algorithmic EKG-based cardiac risk scoring, quantitative brain MRI comparison and AI-assisted prostate cancer mapping from biopsy imaging.

5. A separate proposal would move some algorithmic lab analyses out of the lab fee schedule. CMS is proposing to reassign 10 HCPCS codes covering algorithmic analyses run on existing lab data, such as a secondary computer interpretation of a genomic sequence, from the Clinical Laboratory Fee Schedule into the same SaMS payment track. Unlike the lab fee schedule, the outpatient payment system applies beneficiary cost-sharing and budget-neutrality adjustments, so patients could begin owing a copay on tests that previously carried none.

6. CMS called the proposal an interim policy rather than a permanent fix. The agency said it plans to work toward a more comprehensive, long-term valuation methodology as it gathers more data. It is seeking comment on whether the new status indicator should allow full separate payment or instead be discounted when billed alongside other procedures, and on whether additional codes should be included on the list.

CMS has released the 2027 Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Proposed Rule. K...
07/02/2026

CMS has released the 2027 Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Proposed Rule.

Key updates to the proposed rule include:
1. Proposing a 2.4% rate increase for hospitals that meet the applicable quality reporting requirements.
2. Proposing to remove an additional 638 services from the inpatient only list.

You can read the rule at the below link:

Calendar Year 2027 Hospital Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Proposed Rule (CMS-1850-P)

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06/23/2026

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03/30/2026

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02/04/2026

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