During its 2011 session the Florida Legislature passed HB 7107, considered to be a landmark Medicaid reform act that will convert Florida's Medicaid system from a traditional fee-for-service (FFS) system to one primarily based upon managed care plans. Once overhauled, Florida's system will be one of the only Medicaid programs in the nation to operate under a managed care system.

According to the Florida Agency for Health Care Administration (AHCA), Florida's current Medicaid enrollment is approximately 2.97 million people, half of whom are children or adolescents under the age of 20. More than 100,000 Florida medical facilities and medical professionals offer services to Medicaid enrollees. To become eligible to provide services to Medicaid recipients under Florida's current system, a medical provider need only complete an online application at AHCA's fiscal agent website.

However, the current system has led to out-of-control cost inflation, with estimated expenditures for fiscal year 2010-2011 totaling approximately $20.2 billion. By passing HB 7107, the Florida Legislature is betting that the cost control and fraud prevention measures commonly utilized by private health maintenance organizations will form the basis for a solution for Florida's Medicaid delivery system by affording comprehensive medical services while controlling costs and reducing fraud and abuse.