Healthcare Business News

Alabama Medicaid faces $30 million shortfall

By Associated Press
Posted: November 26, 2012 - 8:45 am ET

Alabama's top health officer says state Medicaid is facing a major funding shortfall.

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The director of the Alabama Department of Public Health, Dr. Don Williamson, says federal changes will add $30 million to the state's Medicaid funding needs for 2014.

The Anniston Star reports that state officials didn't know about the additional cost when voters approved using $437 million from a state fund to plug the Medicaid budget in September.

Williamson says the state is looking at the additional money just to keep the program where it is without fundamental changes in the program.

About 900,000 Alabamians are now eligible for Medicaid. That's about one in every six residents of the state.

Williamson has said Alabama Medicaid will likely switch to a managed-care system to save money.

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