Gov. Rick Scott is targeting health insurers participating in the state Medicaid program, accusing them of negotiating hospital rates that are too high, which he says is the reason the new managed care program is not generating enough savings.

Scott instructed state health officials in a letter Monday to examine hospital contracts, warning that those with rates higher than 120 percent of the Medicaid cap will be subject to an “immediate corrective action plan” that could nullify the contracts and kick insurers out of the Medicaid program.