The state of Alabama is ditching a plan to reform its Medicaid program through regional care organizations, which would have shifted the program into a managed care approach instead of a fee-for-service model, according to the ABC33.
The decision to abandon RCOs was attributed to the uncertainty over funding and potential changes at the federal level. In addition, the initial costs of implementing the program deterred the state from pursing RCOs.
Alabama Gov. Kay Ivey said the state would pursue an alternative plan for Medicaid reform; however, they are looking for a less risky plan with a similar outcome.
"While the financial implications could be challenging for our state, the new flexibilities and waiver options that the Trump Administration is willing to consider gives our state Medicaid program new options to accomplish similar goals without incurring the same level of increased upfront costs associated with the RCO program," Stephanie Azar, Alabama's Medicaid commissioner, told the Alabama Business Journal.
The RCO program, pioneered in Alabama by former Gov. Robert Bentley, was a Medicaid reform proposal that was expected to make the state program more efficient, eventually driving down the cost to provide care to the state's Medicaid population.