Federal officials approve changes to Alabama Medicaid program

Federal officials approve changes to Alabama Medicaid program

MONTGOMERY, AL (WSFA) - The Alabama Medicaid Agency's regional care organizational plan was approved, Gov. Robert Bentley announced Tuesday.

Instead of the traditional fee-for-service health care delivery model, the state will contract with regional care organizations to provide care and case management services for patients.

The waiver approval comes after three years of planning and negotiation with federal officials over the proposed change.

The Centers for Medicare and Medicaid also agreed to provide $328 million to help with the transition.

State officials hope the approach will provide better outcomes for patients by managing their care. They also hope it will help push down spiraling Medicaid costs.

Bentley called this a "significant step" in the plan to provide Medicaid patients the services they need.

Copyright 2016 WSFA 12 News. All rights reserved. The Associated Press contributed to this report.