Montgomery, AL – A long-running dispute between Alabama's Medicaid agency and federal officials has been resolved, allowing the state to keep $500 million that had been under challenge.
Gov. Bob Riley announced Wednesday that the agreement ends a 15-year dispute that had threatened severe financial harm to the program that provides health care to Alabama's poor.
The federal Centers for Medicare and Medicaid Services had threatened to withhold the $500 million because of what it viewed as years of overpayments.
The agreement negotiated by Riley, hospital leaders and state and federal officials creates a new formula to determine the level of federal funding that goes to Alabama's Medicaid program.
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