Published: Aug 23, 2010 8:02 PM EDT
Updated: Aug 23, 2010 5:02 PM EDT

MIAMI (AP) - The federal agency that is overseeing Florida's controversial Medicaid pilot program says it will work with the state to review the program.

In 2005, Florida's Agency for Health Care Administration received a federal waiver to conduct the pilot, which privatized care in five counties for five years. The agency asked the Centers for Medicare & Medicaid Services for an extension.

A letter from CMS last week said it's considering the extension under a different statute that would allow Florida health officials to make changes to the program to address complaints.

Advocacy group Florida CHAIN praised CMS's denial "for a blanket extension," saying the new process will allow Florida to address "persistent, unresolved problems" in the program.