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.
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.