drug benefit plan

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Worried about rising expenditures for prescription drugs, many states are employing preferred lists to encourage doctors to prescribe older, lower-priced drugs and forego the latest, more expensive medicines.

If Congress succeeds in passing a Medicare prescription drug benefit this year, the debate over preferred drug lists - now raging in numerous states - is likely to explode onto the national stage.

The lists - also known as formularies - are, whether we like it or not, a form of rationing. Ask any Canadian.


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The newspapers and airwaves are filled with people fuming about Fair Pharmacare. There are three major complaints (other than the challenge of getting through to Pharmacare to register). Firstly, that Fair Pharmacare forces patients to pay more of their own money for prescriptions. Secondly, that the requirement to report your income is a violation of privacy. Thirdly, that it is inappropriate to use income from 2001 to determine benefits in 2003.