Tagged: Alabama Medicaid

The Alabama Legislature has approved a compromise General Fund budget that increases funding for courts and prisons.

The Alabama Legislature has voted to extend two taxes that support the state Medicaid program.

The assessments on nursing homes and hospitals were due to expire this year, but the Senate gave final approval Thursday to bills that extend the nursing home tax for two years and the hospital tax for three years. The bills passed the House earlier and now go to the governor to be signed into law.

Senate budget committee Chairman Arthur Orr of Decatur says the bills were critical to maintaining Medicaid services for low-income Alabamians.

The Alabama Legislature passed a sweeping revision to Medicaid that replaces the way the program delivers and pays for care with regional managed care operators.

Under the legislation passed Tuesday, the State Medicaid Agency will no longer bear financial risks but will instead assume the role of contract administrators. Savings of $50 million to $75 million over five years and future cost containment is expected.

Privately owned Regional Care Organizations won't deal directly with patients, but will contract directly with doctors to provide care.

The Alabama House will consider a bill that would reorganize the state's Medicaid program.

The bill will be up for final passage in the House of Representative Tuesday.

The bill was recommended by a Medicaid Advisory committee created by Gov. Robert Bentley.

The Medicaid bill will be debated Tuesday with just three days remaining in the 2013 legislative session. The bill replaces the current payment method with the regional care organizations.

Lawmakers are trying to ease the financial burden Medicaid places on Alabama by passing a bill designed to streamline the $5.63 billion program's operational system.

The bill under consideration could change the present "fee-for-service" basis of Medicaid payments to a for-profit, managed care plan or a combination of nonprofit and for-profit companies.

The Medicaid Advisory Committee commissioned by Gov. Robert Bentley does not want to use for-profit managed care companies.

A joint session of the Alabama legislature heard a recap of bills intended to provide major changes to the way Medicaid is administered in the state.

Dr. Don Williamson, state health officer, says if the bill passes, eight or so regional care organizations would assume financial risk in exchange for set payments for patient care.

"We are creating a community based care system that moves from a `fee for service/state bears risk' model to a capitated model that puts a third party at risk," he told the group.

Representatives from community groups and managed care companies are lauding the Legislature's efforts to reorganize Alabama's Medicaid program.

Speakers told House and Senate members Tuesday that the proposal is a major first step, but they also voiced concerns for the bill before it goes to committees for public hearings and revisions.

The bill would change Medicaid from a fee-for-service program to a program where private-sector contractors develop care networks in up to eight regions of the state.