Alabama Medicaid History and Facts

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Initial Medicaid Implementation: Alabama began exploration of formation of its Medicaid program through an executive order in 1967. The state didn’t begin enrolling people in Medicaid until January 1, 1970. On the first day of enrollment 253,991 Alabamans were deemed eligible for insurance.

Key Medicaid Political Issues: Within a year and a half of the program in effect, several services were discontinued due to the cost. First eyeglasses were discontinued, then provider reimbursements were lowered, hospital stays were reduced, and drug spending was reduced. Budget issues continue to be a focus of the Medicaid program in the state and was at the center of key budget discussions in 2015 and 2016.

Medicaid expansion Implementation: The state began “looking into” Medicaid expansion in November of 2015 under governor Bently. The state has not taken major action to expand Medicaid since the 2015 comments by the governor. The state has proposed work requirements for their existing Medicaid eligible population.

General facts about Alabama Medicaid:

Medicaid program name: Medicaid

CHIP Program name: ALL Kids

Separate or combined CHIP: Separate CHIP

Enrollment: 874,000 (2017)

Total Medicaid Spending: $5.461 billion (2016)

Share of total population covered by Medicaid: 21%

Share of Children covered by Medicaid: 40% (estimate)

Share of Medicaid that is Children and Adults: 68%

Share of Spending on Elderly and people with disabilities: 63%

Share of Nursing Facility Residents covered by Medicaid: 66% (estimate)

FMAP: 70.2%

Expansion state: No

Number of people in expansion: N/A

Work Requirement: Under consideration

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