Republican Gov. Mark Sanford has approved a preferred drug list for Medicaid patients - a plan drawn up during the administration of his predecessor, Democrat Jim Hodges.

Flanked by legislators of both parties, Sanford said at a State House news conference Thursday that the drug list would save as much as $40 million in state and federal funds a year. That money could be used to provide more care for Medicaid clients, children, the poor, elderly and disabled.

The drug list is drawn up by doctors and pharmacists based on clinical tests and their experience. They put the drugs they see as most effective on a list to be prescribed to the state's 900,000 Medicaid clients.

The state would make money because manufacturers would have to pay to get their drug on the list if it were not selected as the panel's top choice.

Doctors still could prescribe any drug for their patients, but they would have to get prior approval - a timely step - if their choice was not on the list.

Michigan and Florida have similar plans. The Bush administration is encouraging states to adopt preferred lists to control rising drug costs, with increases in South Carolina of as much as 25 percent a year.

Sanford said he is submitting the proposal for approval by the federal government, as Medicaid is a joint state and federal health care program. The review could take 90 days, so it could be summer before the list took effect.

The plan is the same as one proposed by the state Department of Health and Human Services in the waning days of Hodges' administration.

Hodges said then he would not submit the plan for federal approval without Sanford's agreement; Sanford said he could not agree to a plan he had not seen.

"I've always been very religious, if you will, about looking at the document before you sign on the dotted line," Sanford said.

The plan was in limbo until Thursday.

Bill Prince, the Health and Human Services director under Hodges, oversaw the writing of the list. He said the plan might have saved $5 million in state and $10 million in matching federal money had Hodges approved the list in November, when it was completed.

Prince said he does not fault Sanford for the delay.