# Alabama Medicaid Agency Seeks Waiver Renewal

The Alabama Medicaid Agency is preparing to submit a Section 1115 Demonstration waiver renewal application to the Centers for Medicare and Medicaid Services (CMS) to continue federal reimbursement for inpatient stays in Institutions for Mental Disease (IMDs) for adults with serious mental illness. This renewal targets select counties in Alabama, including Mobile, Baldwin, Washington, and Montgomery, with a proposed effective date of May 20, 2027. Public comment periods and meetings are scheduled to gather stakeholder feedback, providing behavioral health service providers and contractors with opportunities to engage and prepare for upcoming service delivery and compliance requirements.

- **Why this matters:** The waiver renewal sustains federal funding streams critical to inpatient behavioral health services in Alabama, impacting service providers and contractors operating in the mental health sector.
- Agencies and contractors should consider engaging in the public comment process via email at PublicComment@Medicaid.Alabama.Gov or phone at 650-479-3208 to influence program design and implementation.
- This renewal signals continued demand for behavioral health services and related support contracts in the specified Alabama counties.
- Organizations should evaluate their readiness to meet potential updated program requirements effective May 20, 2027, and align business strategies accordingly.

**Jurisdictions:** sled
**Industries:** Healthcare
**Topics:** Grants & Funding
**Published:** September 22, 2026

### Government Entities
- Alabama Medicaid Agency
- Centers for Medicare and Medicaid Services (CMS)
- Alabama Department of Mental Health
- Department of Human Resources

### Sources
- [Alabama Media Portal 2.0 - Press Releases](http://media.alabama.gov/pr/pr.aspx?id=16810&t=1) - Alabama Government