October 14, 2014

State of Alabama
Press Release: Medicaid

Provider payment cuts made in 2013 reversed effective October 1

Payment reductions made to certain providers during 2013 will be reversed starting October 1. Required to balance the Agency’s 2014 budget, the cuts impacted physicians, dentists, lab and x-ray providers, durable medical equipment providers and renal dialysis providers.

Physician payments – including payments to physician assistants and nurse practitioners -- were reduced 7.5 percent on October 1, 2013. A 5 percent payment reduction to the other providers was implemented in April 2013. The reduction did not impact the federally-mandated payments to primary care physicians.

“We deeply appreciate our providers continuing to care for Medicaid patients during this time of budget constraints.  At the same time, we recognized that to have an adequate provider network and meet the needs for Medicaid’s future transformation, it was imperative that we return to our previous payment rates.”



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