Overview

STATE BUDGET
The state operates on an annual budget cycle from October 1 to September 30 of the following year. In November, agencies submit their budget requests to the governor. By the second legislative day of each regular session of the legislature, the governor must submit his or her proposed budget to the state legislature. The legislature adopts a budget between February and May. It must pass with a simple majority. The governor is required to submit a balanced budget to the legislature and the legislature must pass a balanced budget.
STATE LEGISLATURE
Alabama is one of the few states where state representatives and senators all serve four-year terms and all are elected in the same cycle. The House of Representatives has 105 members, and there are 34 seats in the Senate. The Legislature convenes annually on the first Tuesday in February, except during the first year of the four-year term, when the session begins on the first Tuesday in March. In the last year of a four-year term, the legislative session begins on the second Tuesday in January. The length of the regular session is limited to 30 meeting days within a period of 105 calendar days. There are usually two meeting days per week, with other days devoted to committee meetings. Bills do not carry over from year-to-year.
KEY RESOURCES
- Alabama State Legislature
- Alabama Attorney General
- Alabama Governor
- Information on Healthcare Policy in Alabama
2025 LEGISLATIVE SUMMARY
Alabama passed SB252, which prohibits pharmacy benefits managers from using spread pricing and steering practices; PBMs would also be prohibited from reimbursing independent pharmacies at a rate lower than the Medicaid reimbursement rate, denying network participation, imposing excessive fees, or retaliating against pharmacies. The act also requires PBMs to pass on 100% of rebates to pharmacies unless the rebate explicitly is directed elsewhere. The commissioner of insurance is authorized to enforce the act.
Alabama Laws
Ala. Code § 22-21-318. Powers of Authority: Health Care Authorities – Alabama
Introduced: Status: Enacted
Statute gives various powers to public corporations that operate health care facilities. Statute also provides immunity from state or federal antitrust laws.
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Ala. Code § 22-21-336. Transfer of funds and assets to authority: Health Care Authorities – Alabama
Introduced: Status: Enacted
Statute authorizes any municipality, county, or educational institution, any public hospital corporation and any other public agency, authority or body to transfer of funds and assets to any authority. When doing so, entity does not […]
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Ala. Code § 22-21-7. Itemized statement of services rendered to be furnished patient upon request; provisions of statement; itemization of services and expenses; action by Attorney General; payment of claims by insurance companies: Hospitals and Other Health Care Facilities Generally – Alabama
Introduced: Status: Enacted
Within 10 days following discharge, a hospital or nursing home providing services to a patient shall submit to the patient an itemized statement detailing in language comprehensible to an ordinary layman the specific nature of […]
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Ala. Code § 22-6-122. Medicaid Pharmacy and Therapeutics Committee — Classification and recommendation of drugs; assurance of quality patient care; review of pharmaceutical products: Medicaid Preferred Drug Plan – Alabama
Introduced: Status: Enacted
Medicaid shall make available the preferred drug list to Alabama Medicaid providers
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Ala. Code § 22-6-123. Considerations for inclusion on preferred drug list; review; adoption of list: Medicaid Preferred Drug Plan – Alabama
Introduced: Status: Enacted
Until Medicaid adopts the preferred drug list, Medicaid shall continue to use its existing voluntary preferred drug list and prior authorization program
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