AlabamaAlabama law sets ongoing nursing home charges and Medicaid payment rules
Alabama nursing homes pay ongoing supplemental bed charges, while Medicaid pays participating homes under its May 1, 2026 rules, with exceptions written into the law.
What it does
Alabama nursing homes pay supplemental bed charges without a scheduled end date. A separate secondary charge depends on required state funding, and covered rates remain limited by nursing home revenue.
Alabama Medicaid pays participating nursing homes under payment rules in effect on May 1, 2026, with the exceptions written into the law.
Argument forContinuing nursing home bed charges could give Alabama a more predictable funding source for Medicaid and medical services.
Argument againstOngoing bed charges could leave nursing homes with costs that Medicaid cannot fully repay under federal rules.
More detail
Alabama collects supplemental charges and a monthly surcharge based on nursing home beds. Every Alabama nursing home pays $1,603.08 per bed yearly and a $43.75 monthly surcharge per bed. The secondary charge is $401.28 per bed yearly, paid monthly. The secondary charge depends on the minimum state funding required by Section 2 of Act 2015-536. Covered charge rates must be reduced when needed to keep their combined revenue at or below 6% of affected nursing homes' total yearly revenue. The law took effect June 1, 2026. These charges have no August 31, 2028 expiration date.
The Alabama Medicaid Agency pays participating nursing homes using its payment rules as they stood on May 1, 2026. This requirement covers every Alabama nursing home participating in Medicaid. Exceptions written into the law apply, including limits on payments for operating costs and direct patient care. This requirement took effect June 1, 2026. May 1, 2026 identifies the version of the payment rules used.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 9EnactedBecame Law
- Apr 2Ready to Enroll
- Apr 2EnrolledTo Governor
- Apr 2Signature Requested
- Apr 2Delivered to GovernorMinor
- Apr 1Third Reading in Second House
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1131. Result: pass.Lower
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Apr 1Motion to Read a Third Time and Pass - Adopted Roll Call 1131Passed House
- Mar 31Reported Out of Committee Second House
- Mar 31Read for the Second Time and placed on the Calendar (Ways and Means General Fund)Minor
- Mar 12Read for the first time and referred to the House Committee on Ways and Means General FundMinor
- Mar 12Pending Committee Action in Second House (Ways and Means General Fund)
- Mar 11Third Reading in House of Origin
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 819. Result: pass.Upper
- Mar 11Motion to Read a Third Time and Pass - Adopted Roll Call 819Passed Senate
- Mar 10Reported Out of Committee House of Origin
- Mar 10Read for the Second Time and placed on the Calendar (Finance and Taxation General Fund)Minor
- Jan 14Read for the first time and referred to the Senate Committee on Finance and Taxation General FundMinor
- Jan 14Pending Committee Action in House of Origin (Finance and Taxation General Fund)Introduced
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