April 30, 2014

State of Alabama
Press Release: Medicaid

RCO legislation revises 2013 law as agency moves forward on reform

A new law signed April 4 by Governor Robert Bentley now sets the stage for publication of rules and other activities to transform the Agency’s fee-for-service system to a capitated, coordinated care model.


Senate Bill 459 was introduced on March 11 to amend the Regional Care Organization (RCO) law passed during the 2013 legislative session, according to Dr. Donald Williamson, State Health Officer and Chair of the Medicaid Transition Task Force. 


“The new law is based on considerable input and discussion by physicians, hospitals and other healthcare providers and is designed to support and strengthen Regional Care Organizations as they prepare for this transition,” he said.


The legislation amends current law to revise the membership of and eligibility requirements for an RCO’s governing board, to allow the appointment of an executive committee, to require the creation of a provider standards committee by each RCO, and for the state Medicaid agency to establish minimum reimbursement rates, and to review all RCO contracts and agreements, among other stipulations.


“My expectation is that we will probably see more rapid engagement in collaboration as a result of this,” said Dr. Williamson, noting that collaborative activities are an important aspect of the reform process.


“When you are collaborating, you are not acting as an agent for your organization, but as an agent for the state,” he said. “We are creating a market where we hope to have better care at a lower cost, in a market created by the various providers working to develop and implement the RCO.”


  • For more information, visit http://medicaid.alabama.gov
  • For more state-wide press releases, click here