MONTGOMERY, AL (WSFA) - Alabama State Auditor Jim Zeigler said Thursday that the state's plans to move to a system of regional care organizations will cost the state more money than if it did nothing.
On Thursday, the Contract Review Committee decided to delay a contract dealing with legal services to help the regional care organization transition. The delay can last up to 45 days before the committee will have to send the contract to the governor with their recommendation.
Regional care organizations are supposed to be the state's solution to the rising cost of Medicaid. By changing how the state pays for Medicaid, the state was supposed to curve Medicaid's cost.
However, Children's Hospital CEO claims in a letter that the program would cost more and hurt the care provided to Medicaid issues.
If the regional care organizations are to be implemented, the state would receive more than $700 million in federal funding.