EXECUTIVE ORDER NUMBER 40

WHEREAS, a financially sustainable Alabama Medicaid Agency is a paramount priority of this Administration;

WHEREAS, the Alabama Legislature recently passed a historic reform of Alabama Medicaid;

WHEREAS, the Alabama Medicaid Agency will begin the implementation of the reform;

WHEREAS, reform is expected to improve the quality and coordination of care and slow the growth in Medicaid costs;

WHEREAS, the Alabama Medicaid Agency provides access to critical pharmaceutical services for the elderly, the blind, the disabled, and low-income children and families in Alabama; and

WHEREAS, the continued growth in the cost of pharmaceutical services requires a review of options available to control that cost growth,

NOW, THEREFORE, based upon these considerations, and for other good and valid reasons related thereto, I Robert Bentley, Governor of the State of Alabama, by virtue of the authority vested in me by the Constitution and laws of the State of Alabama, do hereby establish the Alabama Medicaid Pharmacy Study Commission.  The Commission is created to report its findings to the Governor.

The Commission shall consist of:

1.    The State Health Officer, who shall serve as chair of the Commission;
2.    The Acting Commissioner of the Alabama Medicaid Agency;
3.    The chair of the Senate Finance and Taxation General Fund Committee;
4.    Co-chair of the House Ways and Means General Fund Committee Steve Clouse;
5.    The chair of the Senate Health Committee;
6.    The chair of the House Health Committee;
7.    A pharmacist engaged in independent private practice appointed by the Governor;
8.    A hospital administrator appointed by the Governor;
9.    A practicing physician appointed by the Governor;
10.  Additional members as the Governor deems necessary.

All appointments by the Governor shall serve at the pleasure of the Governor.

BE IT ORDERED that the Commission shall study the current Medicaid pharmacy delivery and reimbursement system and options for reform of the system. The Commission shall provide a written report of its findings, which shall include: (i) an analysis of the current system; (ii) a comparison of the Alabama Medicaid pharmacy program with programs in other states; (iii) descriptions of alternative pharmacy systems that could maintain quality and save money for the state Medicaid agency; and (iv) the estimated savings and economic impact of each such described system, if implemented. These findings shall be presented to the Governor by December 1, 2013.

BE IT FURTHER ORDERED that the chairman of the Commission may establish an executive committee and any advisory committees he deems necessary for the effective operation of the Commission.

BE IT FURTHER ORDERED that the Commission shall adopt rules governing times and places for meetings and the manner of conducting its business.  The Commission, and any committees of the Commission, may meet via teleconference.  All Commission members shall serve without compensation.

BE IT FURTHER ORDERED that this Executive Order become effective immediately upon signing and shall remain in force until such time as it is modified or rescinded by the Governor.

DONE AND ORDERED this 6th day of June, 2013.

Robert Bentley

Governor

Attested

Beth Chapman

Secretary of State