Alabama OKs use of BP oil spill settlement for Medicaid funds

In a 22-8 vote, the Alabama Senate approved to use $400 million of an estimated $1 billion BP oil spill settlement to pay off state debt, with $120 million allocated to the state’s Medicaid program, the The Huntsville Times reports.

Advertisement

Pending approval from Alabama Gov. Robert Bentley (R), $15 million of settlement funds would be funneled straight to Medicaid this year and another $105 million in 2018. In total, the state plans to allocate $700 million to Medicaid next year.

Even with the settlement, the state’s Medicaid agency — which covers 1 million Alabama residents — said it is receiving $85 million less than it needs for 2017. As a result, Alabama’s Medicaid has cut physician reimbursements.

Some state senators, including Sen. Arthur Orr (R-Decatur), asked for Medicaid to receive more oil spill funds. Sen. Orr said the Medicaid program may request $865 million in state funding in 2018, which is about $165 million over the program’s current request, according to the report. 

More articles about payer issues:
Federal estimate of uninsured falls to record low: 7 statistics
States opposed to ACA seeing more exchange struggles
US probe still preventing Cigna from enrolling new Medicare members

Advertisement

Next Up in Payer

Advertisement

Comments are closed.