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The Alabama
Medicaid Agency will again move forward with its plans to implement managed
care for Medicaid recipients following a special legislative session that
increased funding to the agency for current operations and for implementation
of Regional Care Organizations. The Agency has been on hold since May 2016 when
the legislature appropriated $700 million from the General Fund, $85 million
less than needed.
A total of $190 million in additional
funding for the Agency over the next two fiscal years was appropriated during a
special session that ended September 7, including $120 million from BP
settlement funds. Additionally, legislators were able to free up about $70
million for the Medicaid program in 2017 in a compromise agreement. The
infusion of funds will enable the Agency to move forward with its reform
efforts.
After
legislators adjourned, Governor Robert Bentley announced that passage of the
bill to allocate funds to Medicaid also would make it possible to restore enhanced
payments to primary care physicians – popularly known as “the bump” – that were
ended August 1 to avoid a budget deficit. The cut would have saved
approximately $15 million for the General Fund. A date to reinstate the
payments has not been set.
Medicaid
Commissioner Stephanie Azar expressed her appreciation to the governor and
legislature for their support of Medicaid and its recipients. “I appreciate all
of the hard work that has gone into these very difficult decisions. Governor
Bentley and the Legislature have made it possible for the Agency to continue
its efforts to improve the quality of care provided to our recipients while
implementing cost efficiencies for the state.”