South Carolina plans to join several other states in a prescription-drug purchasing pool as a way to control spiraling Medicaid costs.

Gov. Sanford has agreed to join Michigan and Vermont in the purchasing pool those states announced last week, state officials said Tuesday.

The state's participation is contingent on receiving federal approval for its proposed preferred drug list, though the list is modeled after programs already in effect in other states.

"It's a question of how much bang you can get for the buck," said Will Folks, Sanford's spokesman. "The governor has always supported ideas like this that get us more for the money. It's something that becomes even more critical when you're looking at the budget crisis we're facing."

Other states, including Minnesota and Wisconsin, may also join the pool, said Frank Adams, spokesman for Health and Human Services.

By buying in bulk, the states hope to negotiate better prices from prescription drug companies, known as "supplemental rebates." The more states that participate, the more buying power they can use to negotiate deals.

Under the plan, Virginia-based First Health Services Corp. would administer the program, nego-tiating on behalf of the multi-state arrangement. First Health is the pharmacy benefits admi-nistrator for South Carolina, as well as Michigan and Ver-mont.

Michigan and Vermont already have preferred drug lists. Medications on the list must meet certain criteria. Those not on the list require prior approval before a doctor can prescribe them to Medicaid recipients.

Drug companies can get their medications on the list by negotiating a fee with the state and agreeing to sell their drugs at a lower cost.

The lists are increasingly popular as more states face budget problems while their Medicaid costs skyrocket.

Sanford announced South Carolina's drug list proposal earlier this month.

Officials said that the state would like to participate in the multi-state purchasing pool as soon as the federal government OKs its preferred drug list.

Adams said he doesn't think approval will be a problem.

"The feds have a vested interest in this occurring," he said. "They pay 70 percent (of Medicaid costs). When we lower the price, they don't spend as much money."

He said the state will be able to save $13 million of its own money with its preferred drug list.

He didn't have an estimate on how much more the state could save by participating in the purchasing pool.

"I think one of the most frus-trating things about Medicaid, when you have to reduce the program's spending, (is that the burden) falls on people with South Carolina zip codes," Adams said.