The association claimed the state unlawfully cut Medicaid payments by 5 percent to certain physicians and hospitals under an emergency declaration, according to TV station KTVA.
The settlement resolves the complaint and allows Alaska providers to get some of the money that was cut.
“As part of the agreement, all Medicaid providers may be eligible for a one-time financial settlement,” the association stated on its website.
In a statement to KTVA, Adam Crum, commissioner of the Department of Health and Social Services, called the settlement a “fair result for both parties.”
He added: “Instead of spending more time in a court room, both sides sat down to see if there was a path forward. This settlement provides the process ASHNHA feels providers need, while also recognizing the current finances of the state.”
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