This week, our In Focus section reviews the background and current status of Florida’s Low-Income Pool (LIP), a more than $2.1 billion funding mechanism to provide additional funding to the state’s hospitals. Federal approval for the LIP program expires on June 30, 2015, and the Centers for Medicare & Medicaid Services (CMS) has informed Florida’s Agency for Health Care Administration that LIP will not be approved to continue in its current form. While negotiations between AHCA and CMS on the future of LIP continue, the Florida Senate has put forward a proposed redesign of the LIP program. The Florida House, however, has not put forward a LIP proposal at this time pending resolution of outstanding issues between CMS and the Agency. In this week’s update, we provide background on LIP and look at the Senate’s proposed changes.