What is your advice on the next steps in requesting the FOIA information”? In the responce given, they state that ALabama Medicaid is a state program and that only citizens of the state of Alabama have the right to request information under the Alabama Open Records Act. Even though the the Alabama Medicaid program is a state program, it is financed by the Health Care Financing Administration (HCFA) which is a federal agency that provides the federal matching money to assist the state in funding the Medicaid program. “Medicaid is a jointly-funded, state-administered program. Medicaid’s matching reate is approximately 69 percent federal, 31 percent state.” http://medicaid.alabama.gov/content/9.0_Resources/9.5_FAQ_Pages/9.5.1_FAQ_About_Medicaid.aspx
The federal FOIA does not cover state agencies. You can request documents from federal agencies regarding state agencies, though.