AS 47.07.065: Payment for prescribed drugs.

(a) The department shall pay for prescribed drugs under AS 47.07.030(b) under regulations adopted by the commissioner in conformity with applicable federal regulations.

(b) The department shall adopt in regulation and regularly update a preferred drug list and a prior authorization medications list under a state program permitted under 42 U.S.C. 1396r-8 (Title XIX, Social Security Act). The department shall take other reasonable cost savings and cost containment measures, including pursuing and securing negotiated rates, rebates, and contracts or other agreements on covered outpatient drugs. In this subsection, “preferred drug list” means a list of prescription medications within a therapeutic class and suggested as the first choice when prescribed for individuals within the medical assistance program.