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Alabama Leads National Meds Policy

Alabama plan to be adapted for nationwide use

An Alabama plan to pay actual costs for Medicaid drugs, rather than consumer tag prices, is being adapted for nationwide use, the Boston Herald reported last month. Following the Alabama system is expected to save more than $17 billion in federal-state Medicaid funds.

Alabama savings hit 6 percent of the Medicaid bill, or about $30 million, leading California, Oregon and Idaho to copy the policy.

About 10 percent of Medicaid costs, or about $40 billion, goes for prescription drug costs.

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