Alazbama Plans to Offer Compromise in Medicaid Dispute

Montgomery, AL – (AP) - Gov. Bob Riley says Alabama will offer a
compromise in its ongoing dispute with a federal agency over claims
that the state has been receiving too much federal money for the
program.
Riley made the remark on Monday after meeting with the director
of the federal Center for Medicaid and State Operations.
The federal government argues Alabama was overpaid by up to $300
million during the past four years to finance its Medicaid program.
The dispute centers on how Alabama calculates its share of the cost
of providing health care to the poor and disabled.
Federal officials say Alabama's definition causes federal
payments to the state to increase.
Riley says the dispute is hampering his ability to plan annual
budgets.