The Governor of Alabama signed Senate Bill 340 in June to help people enrolled in Medicaid by helping them to have access to well-managed care. In 2012, the Governor established the Alabama Medicaid Advisory Commission to evaluate the financial stability of Alabama Medicaid. Bill 340 was the result of the Commission’s work.
Currently, Alabama Medicaid operates under a fee-for-service model. Under Bill 340, the state will adopt a managed care structure. Under this structure, the bill’s reform plan shifts Medicaid to a network of regional care organizations. Alabama Medicaid will enter into contracts with the organizations to provide services for patients at an established controlled cost, reduce emergency room costs and improve patient outcomes.
Also, approximately 2,700 eligible primary care physicians enrolled in Alabama Medicaid will soon benefit from increased payments from the Agency following federal approval in May on the state’s request to change its payment method. The increased reimbursement is the result of the Affordable Care Act which requires state Medicaid programs to increase payment to certain physicians for specified primary care services.
In addition, a new Pharmacy Study Commission has been initiated by the Governor to review Medicaid’s pharmacy delivery and reimbursement systems and evaluate options for reform. Members of the Commission will hold meetings and identify alternative pharmacy systems to maintain quality and save money for the state. The Commission is to report their findings to the Governor no later than December 1, 2013.