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Alabama Restores “Bump” in Medicaid Reimbursement Rates

October 12, 2016

The Alabama legislature recently passed a bill to restore higher reimbursement rates for certain medicaid providers.

The “bump” in Medicaid reimbursement first came about in 2013, as a requirement of the Affordable Care Act. From 2013-2014, the act required states to pay Medicare level reimbursement rates for certain Medicaid services. When the two-year federal mandate ended, Alabama elected to maintain the higher rates indefinitely.

That is, until July 31st of this year, when the Alabama legislature ended the “bump”, citing budgetary restrictions. Fortunately, this cutback lasted only two months, as the legislature recently voted to reinstate the higher rates, effective October 1st.

Providers looking to take advantage of these rates must meet certain qualifications and take appropriate action in order to participate:

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