Several states around the country are implementing or proposing Medicaid plans to move toward managed care, and Alabama may join the bandwagon, according to a Montgomery Advertiser report.
Rep. Jim Barton (R-Mobile), chairman of Alabama's House Ways and Means General Fund committee, believes the state could reduce Medicaid costs by shifting the care management to private health insurers. Medicaid makes up about 18 percent of Alabama's general fund, which could see a $400 million deficit next year, according to the report.
However, several social advocacy and physician groups believe the for-profit model wouldn't work in the state. Physicians groups said the cost savings from Medicaid would come at their expense and hinder their ability to serve Medicaid patients, while other healthcare advocates argued that Alabama's Medicaid payments to hospitals are already low, reducing the chance to turn a significant margin.
Rep. Jim Barton (R-Mobile), chairman of Alabama's House Ways and Means General Fund committee, believes the state could reduce Medicaid costs by shifting the care management to private health insurers. Medicaid makes up about 18 percent of Alabama's general fund, which could see a $400 million deficit next year, according to the report.
However, several social advocacy and physician groups believe the for-profit model wouldn't work in the state. Physicians groups said the cost savings from Medicaid would come at their expense and hinder their ability to serve Medicaid patients, while other healthcare advocates argued that Alabama's Medicaid payments to hospitals are already low, reducing the chance to turn a significant margin.
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