The bill would make several other changes, including requiring more stringent annual evaluations of whether people receiving Medicaid benefits are financially qualified to do so.
Medicaid is a federal-state program for the needy, aged, blind and disabled and for low-income families with children.
Supporters say that bill, which passed the Senate 38 to 7, should save the state over $114 million a year.
"I would like to applaud Lt. Gov. Amy Tuck, Sen. Alan Nunnelee, Sen. Terry Burton, and the other Senate leaders who passed our landmark 'Operation: Streamline' Medicaid Reform legislation out of the Senate by a resounding 38-7 bipartisan vote," said Gov. Haley Barbour in a written statement.
Barbour called it a "sustainable solution for taxpayers who have been burdened with skyrocketing Medicaid costs in recent years."
However, opponents say they worry poor people will be hurt by the changes.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.