Alabama passes budget, but is still $85M short of needed Medicaid funding

Although the Alabama House of Representatives has approved a state general fund budget of $1.8 billion, it only allotted for a $15 million increase in Medicaid funding, according to the Birmingham Business Journal.

This amount is $85 million short of the $100 million increase the Alabama Medicaid Agency requested.

Alabama healthcare leaders have expressed concern over the lack of funding. "With this level of funding, Medicaid will have to make severe and unsustainable cuts that would limit access to care not only for Medicaid recipients, but for all Alabamians," said Danne Howard, executive vice president and chief policy officer of the Alabama Hospital Association, according to the report. "In addition, delivery system reform in this environment would not be possible."

Last week, Alabama Governor Robert Bentley (R) said he "would veto a budget without $100 million for Medicaid," though lawmakers would likely "override [his] veto," according to the Birmingham Business Journal.

More articles on healthcare finance:
Competing forces put Connecticut hospitals in difficult position
House Republicans unveil 2017 budget: 7 things for healthcare leaders to know
Mich. health insurance tax to continue until 2020

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