September 12, 2014

State of Alabama
Press Release: Medicaid

RCO probationary applicants meet with Alabama Medicaid officials

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The Alabama Medicaid Agency held its first round of meetings with six prospective probationary Regional Care Organization applicants on August 26 and 27 to provide an initial opportunity for the Agency to go over information needed to complete the probationary application process. 

Applicants that wish to be considered for an October 1, 2014, approval date are required to submit all information to Medicaid by September 12. Complete applications received after that time will be considered for a later approval date, according to State Health Officer Dr. Don Williamson, chair of the Medicaid Transition Task Force.

Dr. Williamson also announced that the release of the Request for Proposals to expand the state’s Health Home program statewide has been scheduled for January 2, 2015, with a planned start date of April 1, 2015.

“Based on the applications we have received, the issues that have been raised and the early work that has been done, we think the best approach for Medicaid – and in fairness to those involved – is to release the RFP in January. The April 1 start date corresponds to the date for network adequacy for the Probationary Applicants which we believe will streamline the process,” he said.

Williamson emphasized that future challenges for the probationary applicants will most likely center around governance and solvency, but especially readiness to accept financial risk.  “From October 1, 2014, until we get to where the RCOs are bearing risk, we will be involved in assessing the readiness of the applicant organizations to accept risk,” Dr. Williamson said.

At the same time, the Agency must also prepare for its new role as contract managers and for monitoring the fiscal, operational and other activities of the new organizations while maintaining the Agency’s fee-for-service programs, including dental, long-term care, home and community based waiver services that will initially be outside the RCO, he said.


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