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Sat Jun 25, 2016, 02:11 PM

Alabama Medicaid shortfall.

The state Medicaid Agency has concluded the legislative hearing presentations. The $85,000,000 shortfall remains in place. The most significant cost-cutting measure proposed has been to stop providing adult prescription medicine.

The budget presentations did offer one set of repetitive facts the Republicans made no mention of that bears repeating: Administrative cost - 4% of budget. Profit (or "reserves" for so-called non-profits) - 0%.

I wonder how that compares to BCBS?

Oh - and still no Affordable Care Act Medicaid expansion. Thank you, Supreme Court.


Medicaid program cuts became more likely after the Alabama Legislature adjourned its annual session May 4 without providing the additional funds needed by the Alabama Medicaid Agency to maintain its current operations and reform its existing fee-for-service system.

Alabama Medicaid Commissioner Stephanie Azar emphasized that without additional funding, the Alabama Medicaid program will have to make significant changes.

“I think it’s important for Medicaid providers and recipients to prepare for the impact of these cuts, because this is the budget for Medicaid at this point in time,” she added.

Governor Robert Bentley had asked for $785 million from the General Fund to continue the existing Medicaid program without payment reductions to primary care physicians and other cuts and to move forward with the Agency’s transformation initiative. The Legislature appropriated $700 million to the Agency from the General Fund and later overrode the governor’s veto of the $1.8 billion budget.


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