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State awarded $7.6 million to reform Medicaid

MONTGOMERY (AP) — The state is receiving a $7.6 million federal grant to support the Alabama Medicaid Agency's efforts to transform its claims system into one that is coordinated, patient-centered and cost-efficient, Gov. Bob Riley said Thursday.

The two-year "transformation" grant is the third-highest being awarded by the U.S. Department of Health and Human Services to improve the efficiency, economy and quality of care of state Medicaid agencies.

"Our innovative plan not only seeks to increase efficiency and reduce duplication, but rightfully keeps the health and well-being of the patient at the forefront." Riley said.

Alabama's grant proposal, "Together for Quality," was selected from 130 proposals submitted by more than 40 states. The grant will be used to create a statewide electronic health information system that links Medicaid, state health agencies, providers and private payers, establishing a comprehensive, quality improvement model for the Medicaid program.

"These transformation grants express the core goal of this administration to give states the kind of flexibility they need to deliver high quality care in an efficient and economical way," Health and Human Services Secretary Mike Leavitt said.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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