Casey DeSantis
Florida's First Lady Casey DeSantis' Hope Florida charity received $10 million in state settlement money, which was not publicly disclosed at the time.

Florida Governor Ron DeSantis' administration redirected part of a settlement to a state-affiliated charity overseen by his wife rather than returning it to state and federal coffers, a move that contradicts previous claims that the money was an independent donation from a private healthcare contractor.

The Miami Herald reported on Tuesday that the information comes from a draft agreement between the Florida administration and Centene, the state's largest Medicaid contractor, over overbilling. But rather than getting the full $67 million settlement back, $10 million went to Hope Florida, overseen by Casey DeSantis.

The settlement, finalized in September 2023, was the result of negotiations stemming from allegations that Centene had overcharged Florida taxpayers for prescription medications.

The $10 million were then distributed to two nonprofits that are not required to disclose how they spend their funds, the outlet detailed. These groups later transferred $8.5 million to a political committee tied to DeSantis' then Chief of Staff James Uthmeier, now the state attorney general.

Some Republican lawmakers have raised legal and ethical concerns about the use of funds originally designated for Medicaid, a program subject to strict state and federal regulations.

Although DeSantis claimed the $10 million was a "cherry on top" of the settlement, records show the amount was part of the original overbilling identified in a draft agreement dated February 2022.

The Herald added that attorneys who worked on the early stages of the case, including Lawrence Deas of the law firm Liston & Deas, stated that they approached Florida about the issue and were unaware that any portion of the settlement would be redirected to a charitable foundation. The firm was dismissed before the final deal was reached and did not receive compensation for its work.

DeSantis' office maintains the settlement was legally sound and beneficial to taxpayers. DeSantis Spokesperson Bryan Griffin said the negotiations were handled by the Agency for Health Care Administration and that the "settlement was a great benefit to the state."

However, Republican state Rep. Alex Andrade, who has been investigating the issue, said "this was Medicaid money that was squandered, plain and simple." He also raised suspicion about the possibility that the funds were used for DeSantis' campaign against recreational marijuana, saying "they were in no rush until suddenly they needed cash to fund" it. "Now, we're just trying to drill down on whose bright idea it was to carve out the $10 million for Hope Florida," he added.

The $10 million infusion could be the latest question to arise about the foundation, which was established two years ago to raise money to assist Hope Florida.

Bookkeeping questions were also raised last week in a state House bill analysis— prompting governor DeSantis to fight back and accuse the chamber of operating a smear campaign against the first lady's program, which he said has already helped more than 30,000 people. Under the contract used by AHCA to govern much of its Medicaid managed care program, Hope Florida is guaranteed to receive referrals.

Originally published on Latin Times

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