PROVIDER RESOURCES

Alabama Medicaid Agency


Myers & Stauffer serves as a contractor for the Alabama Medicaid Agency. This webpage serves as a centralized resource for Alabama Medicaid-related program information, documentation, and provider resources, including the average acquisition cost (AAC) list. Explore related Alabama resource pages for additional program information.

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average acquisition cost & Rate Review Information

Myers & Stauffer provides assistance in establishing and maintaining the AAC list for drugs based on drug acquisition cost. When new AAC rates are developed, they are posted in this section.


Cost Lists

Nursing Facility cost Report & Web Portal Information


Contact information

Help Desk

Phone: 800-591-1183
Fax: 317-571-8481
Email: 
alpharmacy@mslc.com
Address: Myers & Stauffer
Pharmacy Unit
800 East 96th Street, Suite 200
Indianapolis, IN 46240

Cost Report

Phone: 800-877-6927
Email: alcr@mslc.com

Web Portal

Phone: 800-374-6858
Email: alcr@mslc.com

Allowable Costs

Email: provideraudit@medicaid.alabama.gov

Frequently Asked Questions

Average acquisition cost (AAC) rate schedules are based on the premise that chemically-equivalent drug products in the same strength and dosage should be reimbursed similarly. AAC rates are designed to maximize the cost-effectiveness of pharmacy services by setting reimbursement amounts for therapeutically-equivalent drug products at the same price, based on the cost of the products. The Centers for Medicare & Medicaid Services (CMS) uses this same premise to establish federal upper limits (FULs) for drug products. AAC rates are essentially the state Medicaid program version of CMS FULs.

In order to maintain an AAC program with reimbursement that reflects current pharmaceutical market conditions, the AAC rate schedule is based on the actual acquisition costs of Medicaid pharmacy providers. The calculated rates are designed to reimburse ingredient costs, considering the prices pharmacies must pay in order to acquire the selected drugs and pharmacies’ need for flexibility in the acquisition of proper drugs to fill prescriptions.

The AAC rate schedule is based on Medicaid pharmacy providers’ actual experiences purchasing selected drug products. Providers who receive requests for drug purchase information are required by ALMA to provide the requested information to insure that the established AAC rates fully consider providers’ cost experience in the marketplace.

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FieldData TableLength
Pharmacy_IDText15 characters, variable length
Pharmacy_NameText100 characters, variable length
Invoice_DateDate10 characters (mm/dd/yyyy)
NDC_CODEText11 characters, fixed length
Item_NumberText10 characters, variable length
Item_DescriptionText100 characters, variable length
Package_SizeText75 characters, variable length
Net_QuantityIntegerWhole number (15 digits, no chemicals)
Unit_Of_MeasureText25 characters, variable length
Unit_CostDecimal000000000000000.00000 (15 digits, 5 decimal places)
Net_Extended_CostDecimal000000000000000.00000 (15 digits, 5 decimal places)

The Alabama Medicaid Agency (ALMA) will use drug purchase information submitted by pharmacies for the purpose of establishing, evaluating, maintaining, and updating an AAC rate schedule. The ALMA has contracted with the firm of Myers and Stauffer to assist in developing and maintaining the AAC. Pharmacies are encouraged to submit copies of purchase information, rather than originals as information submitted will not be returned.

All pharmacy providers enrolled in the Alabama Medicaid Agency program are eligible for random selection to provide drug purchase information to the ALMA and Myers and Stauffer.

All pharmacy providers enrolled in the Alabama Medicaid program are eligible for selection to provide drug purchase information. Periodically, Myers and Stauffer will request purchase information from a sample of identified pharmacy providers. It is not anticipated that any pharmacy location will be selected more frequently than once every two years.

All pharmacy providers enrolled in the Alabama Medicaid program are eligible for selection to provide drug purchase information. When a request is received for drug purchase information, the time frame of the data will be requested for the most recent 30 day period. If that drug purchase information for the most recent 30 day period is not readily available, then the next most recent 30 day period will be acceptable.

The Alabama Medicaid Agency (ALMA) recognizes that changes in pharmaceutical prices and product availability occur on a regular basis. In addition, the ALMA recognizes that the most current, and reliable information regarding changes in acquisition cost and product availability will be provided by pharmacies. The ALMA will obtain and review industry data, such as published pricing information, and information provided by Alabama pharmacies to frequently assess the AAC program and to insure that AAC rates reflect current pharmaceutical market conditions. To respond to changes in the pharmaceutical market that may impact the price and/or availability of drug products, adjustments to the AAC program will be made periodically as needed.

Providers may also request that the ALMA review AAC prices for particular drugs. Providers who wish the ALMA to consider adjustments to AAC rates may make such a request by contacting Myers & Stauffer in writing by e-mail, regular mail, fax, or toll free telephone. When making such a request, providers will be asked to provide as much information as possible to assist the ALMA and Myers and Stauffer in understanding the specific issue being raised and the provider’s desired outcome. Helpful information should include but not be limited to drug purchase summaries, invoices, remittance advices, and other such documentation. In the absence of sufficient information to assess concerns about AAC rates or other aspects of the AAC program, provider requests cannot be fully considered. Providers initiating requests for review of AAC rates or other issues may be contacted to request supporting documentation or other information.

The AAC rate schedule will be updated as necessary as changes are made to the AAC rates for any drug. The updated AAC rate schedule will be posted along with the effective date of the change.

We welcome provider’s questions, comments, and input regarding the AAC program and AAC rate schedule. To share general comments or to request information regarding the AAC rate schedule, you may contact the Myers & Stauffer Pharmacy Unit.

Providers are encouraged to contact the Myers and Stauffer Pharmacy Unit to discuss: 

- Changes in acquisition cost of a drug.
- Changes in product availability.
- Questions regarding AAC rates.
- Questions concerning drugs on the AAC rate list.
- How to obtain a copy of the AAC rate list.

Parties who wish to comment or discuss questions, comments, or concerns about the AAC program may contact Myers & Stauffer weekdays between 8:00 a.m. and 5:00 p.m. (Central Time) as follows:

Myers and Stauffer LC
Pharmacy Unit

800 East 96th Street, Suite 200
Indianapolis, IN 46240

Phone:  800-591-1183
Fax:  317-571-8481
Email:  alpharmacy@mslc.com

Information and materials on the site may not be published or used except as provided or as otherwise noted on the site without the written permission of the state of Alabama, the Alabama Medicaid Agency, and/or Myers & Stauffer.