Hi Shea,

In the state of Alabama, Medicaid will pay for ONE surgery per patient.  In addition to the drug coverage which Medicaid may offer for weight loss drugs in Alabama, they offer coverage for surgery according to an August 2010 report (pdf).

Here is a summary of coverage in Alabma:

Covered Procedures:
Gastric Bypass and Lap Band surgeries. Agency covers one surgery/patient.
Prior Authorization: Beneficiary must have a
1) BMI consistent with morbid obesity diagnosis;
2) Presence of obesity-related medical complications;
3) Planned adjunctive therapy before and after surgery;
4) Physician-patient risk benefit counseling;
5) Minimum 6 months physician-supervised weight loss efforts BMI consistent with morbid obesity diagnosis

Your doctor should be able to help you.