HB 585 Summary

• Amends Section 22-6-160 of the Code of Alabama 1975 to establish statewide integrated care networks for delivering long-term care services to elderly and disabled Medicaid beneficiaries on a managed care basis under risk contracts with capitated payments.

• Requires integrated care networks to be governed by a board of directors composed of 12 members representing risk-bearing participants and 8 non-risk-bearing members, with Medicaid Agency approval of all members and governance structure.

• Mandates creation of a citizens' advisory committee with at least 20% Medicaid beneficiaries or sponsors, representatives from disability advocacy organizations and AARP, and diverse membership reflecting the service region.

• Establishes financial requirements including minimum solvency and reserves, with option to satisfy requirements through irrevocable letters of credit from banking institutions with assets exceeding $4 billion.

• Implements phased timeline: Medicaid Agency establishes rules by April 1, 2017; initiates competitive procurement by April 1, 2018; networks begin service delivery by October 1, 2018, while existing Medicaid long-term care programs continue until networks become operational.