Alabama

It is time again for the Payment Error Rate Measurement (PERM) Cycle for Medicaid Pharmacy providers. CMS collaborates with a vendor to conduct PERM retrospective reviews (i.e., audits) on Medicaid claims, and they are beginning their reviews on our program. Of note: 

• The Payment Error Rate Measurement (PERM) program, authorized by CMS, has begun its reviews for Review Year (RY) 2026. 

• The Payment Error Rate Measurement (PERM) program measures improper payments in the Medicaid and the State Children's Health Insurance Program (SCHIP) and produces state and national-level error rates for each program.  

• PERM RY2026 will review claims from July 1, 2024, to June 30, 2025. 

• Empower AI, Inc. is the Review Contractor (RC) for PERM RY2026, and providers will be contacted by representatives from Empower AI, Inc. Providers must respond to all Medicaid Record Requests (MRRs) from the RC. MRRs have begun as of May 5, 2025. 

• All PERM questions from Medicaid's providers should be referred to the PERM Program Manager, Faith Pedro at (334) 242-5346 or Faith.Pedro@medicaid.alabama.gov.  

The Department respectfully asks that pharmacy providers respond to ALL PERM REQUESTS in a timely manner, as this is a mandatory review; Medicaid is 'graded' on our providers' response rates.   

For more information, contact NACDS’ Leigh Knotts at 803-243-7207.