A potential problem is brewing in Florida for Medicaid patients.

State lawmakers recently discovered a gaping, billion-dollar hole in the budget to cover those costs.  

A budget deficit of $1.3 billion will be created if Florida's "Low Income Pool" program is not extended.

Florida's "Low Income Pool" program, or LIP, reimburses hospitals that treat large numbers of poor and uninsured patients. According to the Tampa Bay Times, the funds are set to expire on June 30 and there is no renewal in place.

"We are very optimistic with the discussions that are going on with the federal government," said Gov. Rick Scott's budget chief, Cynthia Kelly. "We are hopeful that the federal funds that we are including in the budget will still be available."

If the federal funding gets cut, the state possibly would have to make up the difference.

Last month, Scott unveiled a $77 billion budget, assuming that LIP money would be included. The federal government didn't approve funding for Florida's LIP program until April of last year. The deal was only extended for a year with no promises of future funding.

The state's six teaching hospitals, including Tampa General, would stand to lose almost $600 million in funding. TGH itself would lose $85 million in funding.

Democrats have seized on the impending crisis to criticize Republicans for refusing to approve Medicaid expansion.

"Gov. Rick Scott and the Republican-led Legislature have understood for many years that federal law provided for Medicaid expansion in place of the 'Low Income Pool' monies for hospitals," U.S. Rep. Kathy Castor, D-Tampa, said in a statement. "Gov. Scott and the Florida Legislature should not block progress any longer and bring our tax dollars home to Florida."

State lawmakers are trying to determine a back-up plan if the federal funding falls through.