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.