Oregon Governor Urges Support for Formulary Bill

Oregon Gov. John Kitzhaber (D) on Monday urged lawmakers to support a bill that would create a statewide formulary that hospitals and health plans participating in state health programs could consult first when treating patients, the Portland Oregonian reports. Under SB 879, an independent panel of doctors, health care professionals and consumers would select the formulary drugs. The bill would also allow doctors to "easily prescribe" non-formulary drugs at no additional cost to the patient. Kitzhaber said the bill is "absolutely necessary from a budget standpoint" because the cost of prescription drugs in the Oregon Health Plan, which provides health insurance to about 350,000 low-income residents, is expected to increase 60% in the next two years. The Oregon Health Plan is expected to spend $885 million for drugs during the 2001-03 budget period, up from $549 million paid in 1999-2001. Oregon has tried for two decades to establish a statewide formulary, but the plan has met with opposition from drugs companies, physicians and consumer groups. Although doctors and patients had expressed concern about limits on what drugs could be prescribed, many now support the bill (Mayes, Portland Oregonian, 2/27).