MONTGOMERY, Ala. (AP) — Alabama’s governor says prescriptions are the next part of the state Medicaid program he wants to address now that he’s signed legislation to change how doctors and hospitals are paid.
Gov. Robert Bentley signed an executive order Thursday creating a commission to review the Medicaid pharmacy program and make recommendations by Dec. 1. The state Medicaid program spends about $600 million annually on prescriptions.
Bentley used the same approach a year ago to address hospital and physician costs. That resulted in the Legislature passing a bill last month to change Medicaid from a fee-for-service program to one offering managed care through regional organizations. State officials estimate it will save $50 million to $75 million annually.
Bentley says he plans to address nursing home and dental care after prescriptions.