ALABAMA (WHNT) — Hundreds of health care employees are expected to lose their jobs as the battle on whether to extend Medicaid healthcare coverage is still playing out in the state of Alabama. 

A WARN notice has been sent to a reported 785 healthcare employees in the state.

The health care workers are provided through Help at Home, which has provided services for elderly and disabled patients in Alabama since 1975 with five offices across the state. Now it is set to cease operations on Sept. 30.

Kristian Trenaman, a spokesperson for Help at Home, said that the state hasn’t accepted federal funding to expand its Medicaid coverage under the Affordable Care Act and has some of the strictest income-based eligibility requirements in the country.

“The current reimbursement and regulatory environment for Medicaid-funded in-home care has made it difficult to recruit, hire and retain workforce and we have not been able to overcome these challenges in the state of Alabama,” Trenaman said in a statement.

Mary Marr of Thrive Alabama told News 19 that thousands could gain Medicaid coverage through expansion, adding that it’s been very difficult for the hospital when there are fewer patients to care for. 

“There’s about 340,000 people that if we were to expand Medicaid would be covered and they would be brought into the role,” said Marr.

The agency says that they are working with the state and the administration on aging to connect its clients and their caregivers with other healthcare providers. 

In compliance with regulations ‘Help at Home’ will offer severance packages to full-time/eligible employees as well as retention packages.

You can Trenaman’s full statement here.