Alabama ends plan to shift Medicaid to managed care

MONTGOMERY, Ala. (AP) — Alabama is ditching a plan to shift its Medicaid program to managed care after five years of work.

The Alabama Medicaid Agency announced Thursday that the state is aborting the project because of the expected changes the Trump administration and Congress will make to Medicaid.

Alabama Gov. Kay Ivey says the Trump administration has assured her it wants to allow states more flexibility in Medicaid services.

Ivey says the state was at a crossroads and decided to pursue other options.

Alabama since 2012 has been working to shift some of the state’s one million Medicaid patients to managed care provided by Regional Care Organizations in the hopes of controlling costs.

The plan had been previously postponed after funding uncertainty and the withdrawal of several RCO’s.

The Blue Cross and Blue Shield of Alabama released a statement regarding the government’s decision to not go forward with the Medicaid shift. Read BCBS’s statement below:

Blue Cross and Blue Shield of Alabama (Blue Cross) and our affiliated non-profit, My Care Alabama, are disappointed that the Regional Care Organizations, created by the Legislature to bring innovation, cost containment and improved care to Medicaid recipients, will not be going forward. Blue Cross and My Care Alabama made a total commitment to the RCO initiative and partnership with the Medicaid Agency to achieve the goals and objectives of the project. My Care Alabama continued to be engaged and committed to the RCO initiative at the request of the State and the Medicaid Agency. We regret that there will not be an opportunity to move the state toward these goals.

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