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Monday, March 25, 2013
The Alabama State Legislature is set to begin work on an overhaul bill that will change Medicaid to a managed care plan by 2017. According to the Associated Press, the plan that will be introduced to both House and Senate committees is the result of a 14-month effort by the 33-member Alabama Medicaid Advisory Commission formed by Gov. Robert Bentley late last year.
The effort represents a major restructuring of how Medicaid works. The AP reports Medicaid is currently administered by the state and is a not-for-profit entity. The managed care option offered by the commission would turn over delivery of health care to for-profit companies operating in up to eight regions in the state. The government hopes profits would provide incentive to keep the population healthier.
Appropriations from the General Fund budget for the state’s Medicaid exceeds $600 million as needs continue to grow. Under proposed changes, the state agency would pay the administering agency between $300 million and $500 million per year to care for all of the Medicaid patients’ needs in their region.
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Keywords: Alabama Medicaid overhaul bill reform General Fund
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