Gov. Bentley signs state Medicaid reform legislation, Senate Bill 340


Governor Robert Bentley held a ceremonial bill signing June 6 for Senate Bill 340, a measure that will help increase efficiency in Alabama Medicaid while also helping improve patient care.

“We’re providing a way to improve care for people on Medicaid and make smarter use of the tax dollars that support the program,” Governor Bentley said. “This bill will benefit people enrolled in Medicaid by helping them have access to well-managed care. This bill will benefit taxpayers by controlling costs to the state. This represents an important milestone in our efforts to make Alabama Medicaid a more efficient and more affordable program.”

Reforming Medicaid by increasing efficiency and improving care has been a long-term goal for Governor Bentley. The Governor established the Alabama Medicaid Advisory Commission in October of 2012 to evaluate the financial stability of Alabama Medicaid and the care that is provided to patients.

Senate Bill 340 is built on the commission’s work. Currently, Alabama Medicaid operates under a “fee-for-service” model. However, with Senate Bill 340, the state will adopt a managed care structure. Under this structure, Alabama Medicaid will be able to control costs more efficiently. Medicaid will enter into contracts with regional care organizations that will provide services for patients at an established cost. Quality assurances will ensure high standards of care. The result will be quality care at an established, controlled cost.

Senate Bill 340 was sponsored by Senate Health Committee Chair Greg Reed (R-Jasper) and House Health Committee Chair Jim McClendon (R-Springville). Senator Reed said lawmakers worked closely with healthcare stakeholders to develop the best solutions for reform.

“From the beginning of the development of SB 340, I was focused on three groups: patients who are receiving care, providers who are working to manage patient care, and the taxpayers of the State of Alabama who are paying the bill,” Senator Reed said. “I am confident that SB 340 addresses the needs of those three groups in that patients will receive higher-quality care, providers will offer the best management of that care, and the taxpayers will have a better product at a lower cost. It was my privilege to work alongside all those engaged in developing and passing SB 340.”

House Health Committee Chair Jim McClendon (R-Springville) sponsored the legislation in the House. Representative McClendon said reforming Alabama Medicaid will benefit the state in several critical ways.

“In addition to promoting quality of care for the beneficiaries, this will help ensure more convenient access to care,” Representative McClendon said. “By controlling the escalating cost of healthcare, this will help reduce the burden on the state’s General Fund, which in turn will help support funding of the many state agencies that depend on the General Fund for survival. It was my pleasure to work hand-in-hand with Governor Bentley, Senator Reed and Dr. Williamson in crafting this unique approach of providing essential services to those who are most in need.”