Effective October 1, 2026, the Alabama Medicaid Agency (Medicaid) will:

 

1. Remove the Dispense as Written (DAW) Code of 9 from Daytrana, Farxiga, Ravicti, and Vyvanse capsules.

 

2.    Require PA for generic ciprofloxacin-hydrocortisone (generic Cipro HC), fluticasone furoate (generic Arnuity Ellipta), tobramycin-loteprednol (generic Zylet), insulin glargine max solostar (generic Toujeo Max Solostar), insulin glargine solostar (generic Toujeo Solostar), and umeclidinium ellipta (generic Incruse Ellipta).

 

3.    Brand Arnuity Ellipta, Cipro HC, Incruse Ellipta, and Zylet will remain preferred and will be billed with a Dispense as Written (DAW) Code of 9. DAW Code of 9 indicates the following: Substitution Allowed by Prescriber but Plan Requests Brand. This value is used when the prescriber has indicated, in a manner specified by prevailing law, that generic substitution is permitted, but the Plan requests the brand product to be dispensed.

 

4. Update the PDL to reflect the quarterly updates listed below:

 

PDL Additions
dapagliflozin (generic Farxiga)	Sodium-glucose Co-transporter 2 Inhibitors
lisdexamfetamine dimesylate capsules (generic Vyvanse capsules)	ADHD Agents
RhapsidoCC	Skin & Mucous Membrane Immunomodulatory Agents
PDL Deletions
ciprofloxacin-hydrocortisone (generic Cipro HC)	EENT Antibacterials
Farxiga	Sodium-glucose Co-transporter 2 Inhibitors
Fiasp	Insulins
fluticasone furoate (generic Arnuity Ellipta)	Respiratory Agents – Adrenals
insulin glargine max solostar (generic Toujeo Max Solostar)	Insulins
insulin glargine solostar (generic Toujeo Solostar)	Insulins
tobramycin-loteprednol (generic Zylet)	EENT Antibacterials
umeclidinium ellipta (generic Incruse Ellipta)	Inhaled Antimuscarinics
Wegovy	Incretin Mimetics

^CC This agent will be preferred with clinical criteria in place.

Pharmacy Audit Reminders: 

Federal regulations require that administrative audits of provider billing practices be performed on a routine basis. The primary focus of these retrospective reviews is to monitor and improve the accuracy of Medicaid payments and to ensure compliance with policies and procedures established by Medicaid, as well as all applicable federal and state laws. In addition to standard audits performed as outlined in Chapter 27 of the Provider Billing Manual, Medicaid will be monitoring claims for the appropriate use of Other Coverage Code (OCC) and Dispense As Written (DAW) codes. Pharmacy providers are required to maintain supporting documentation on all claims utilizing OCC-3 (Other Coverage Billed - Claim Not Covered) and DAW-8. Failure to maintain appropriate supporting documentation may result in claim recoupments.  

 

As a reminder, for patients with multiple insurances, Medicaid is always the payor of last resort. Pharmacy providers should file a patient’s primary insurance and obtain approval or denial, prior to filing Medicaid. A “Prior Authorization Required” response from the primary insurer does not constitute a denial and will not be accepted if utilizing an Other Coverage Code (OCC)-3 on a pharmacy claim.

 

For detailed guidance, please refer to Provider Billing Manual (Chapter 27- Pharmacy) at: https://www.medicaid.alabama.gov/content/Gated/7.6.1G_Provider_Manuals.aspx.

 

Questions may be directed to the Clinical Audit Pharmacist Specialist with the Pharmacy Services Division: Tara Queen, RPh, MSL, via phone (334) 353-4593 or email tara.queen@medicaid.alabama.gov.

 

For additional PDL and coverage information, visit our drug look-up site at

https://www.medicaid.alabamaservices.org/alportal/NDC%20Look%20Up/tabId/5/Default.aspx.

 

The PA Request Form and criteria booklet should be utilized by the prescriber or the dispensing pharmacy when requesting a PA. The PA Request Form can be completed and submitted electronically at https://medicaid.alabama.gov/content/9.0_Resources/9.4_Forms_Library/9.4.13_Pharmacy_Forms.aspx.

  

   Providers requesting PAs by mail or fax should send requests to:

 

Acentra Health

Medicaid Pharmacy Administrative Services

P.O. Box 3570, Auburn, AL 36831

Fax: (800) 748-0116

Phone: (800) 748-0130

 

Incomplete PA requests or those failing to meet Medicaid criteria will be denied. If the prescriber believes medical justification should be considered, the prescriber must document this on the form or submit a written letter of medical justification along with the PA Form to Acentra Health. Additional information may be requested. Staff physicians will review this information.

The Current Procedural Terminology (CPT) and Current Dental Terminology (CDT) codes descriptors, and other data are copyright © 2026 American Medical Association
and © 2026 American Dental Association (or such other date publication of CPT and CDT). All rights reserved. Applicable FARS/DFARS apply.