A state health agency board gave initial approval Thursday to offering care coordination services to 450,000 Medicaid beneficiaries who have disabilities or are elderly.

The proposal for the "aged, blind and disabled'' population comes as part of the state's move to improve care and reduce spending. This beneficiary category represents roughly 28 percent of Medicaid enrollees in Georgia, but it accounts for 60 percent of the overall costs of the program.

Clyde Reese, the Department of Community Health commissioner, also announced that Georgia primary care physicians are scheduled to start receiving a pay hike for Medicaid services Nov. 1, as part of a provision in the Affordable Care Act.

For two years, it will pay family physicians, internists and pediatricians the same for Medicaid services as they receive under Medicare. The pay hike for eligible doctors is expected to be retroactive back to Jan. 1.