Alabama asks for $157 million increase for Medicaid

As lawmakers work to finalize the state budget for the year beginning Oct. 1, the Alabama Medicaid Agency has requested a 23 percent fund increase — a dollar amount of $157 million — from the Alabama General Fund, according to AL.com.

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This year, approximately $686 million was appropriated for Medicaid — which covers over 1 million Alabamans — from the General Fund.

While answering legislators’ questions at a recent budget hearing, Acting Medicaid Commissioner Stephanie Azar said Medicaid doesn’t have many choices for cutting expenses because the federal government — which pays for 70 percent of the state’s Medicaid costs — has strict requirements.

If Alabama’s Medicaid Agency got rid of its optional programs such as hospice, outpatient dialysis and adult eyeglasses, it would save $7 million.

Lawmakers expressed a variety of concerns about the budget for Medicaid, including how the program is reducing fraud, cutting back on waste and encouraging Medicaid enrollees to make healthier decisions.

More articles on healthcare finance:
Obama proposes incentive in budget for states to expand Medicaid: 3 things to know
40 things to know about healthcare costs
Moody’s upgrades PinnacleHealth System’s rating to ‘A2’

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