Alabama moving closer to Medicaid restructuring

Alabama State Capitol
(Associated Press File Photo)

MONTGOMERY, Ala. (AP) – The Legislature is getting closer to restructuring Alabama’s Medicaid program.

The Senate voted 27-3 Thursday night for a bill that would switch the Medicaid program from a “fee-for-service” plan to regional care organizations. The bill’s sponsor, Republican Sen. Greg Reed of Jasper, said the state would pay the organizations a fixed amount and they would be responsible for the Medicaid patients’ care.

Reed said that shifts the financial risk away from the state, but there will be no cut in services. He said the organizations can save money by better managing patients’ care.

The House passed a similar bill 79-20 Tuesday. Now the House and Senate must agree on one bill.

The regional concept was recommended by a commission set up by the governor to find cost savings.

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