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Alabama Medicaid Moving From Fee-For-Service To Managed Care

On June 6, 2013 Alabama Senate Bill 340 was signed into law, reforming the state’s Medicaid system to operate under a managed care structure instead of its previous fee-for-service model. By October 2016, Alabama Medicaid intends to enter into contracts with a network of five regional managed care organizations (RCOs) that will receive a capitated payment to cover all acute, behavioral, pharmacy, and long-term (post-acute/rehab) care services for about 800,000 of the state’s 930,000 Medicaid beneficiaries. Excluded populations include individuals eligible for both Medicare and Medicaid, residents of long-term care . . .

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