Louisiana Senate Approves Plan to Limit Drugs for Medicaid Beneficiaries

Despite "[h]eavy lobbying by pharmaceutical interests," the Louisiana state Senate on May 17 voted 22-15 in favor of legislation limiting the kinds of drugs Medicaid beneficiaries may obtain, the Baton Rouge Advocate reports. Under SB 502, a committee of physicians, pharmacists, pharmacologists and state officials would create a Medicaid formulary. Physicians wishing to prescribe a drug not included on the formulary would have to receive state approval before giving the drug to a Medicaid patient. Currently, the state covers any FDA-approved drug for Medicaid beneficiaries. According to bill sponsor state Sen. Tom Schedler (R), the state "cannot afford" the 18% annual growth rate in Medicaid prescription drug costs, which are expected to exceed $500 million next fiscal year. "This is about cost containment, bringing down the level of rampant growth," Schedler said, adding that the idea behind the legislation is to get "the best medically suitable drug to the patient at the lowest cost." Physicians and pharmacists support the bill. Opponents of the measure, however, say that the plan does not guarantee that Medicaid beneficiaries would receive the appropriate medication. Accusing the state Department of Health and Hospitals of "making deals" to garner provider support for the plan, state Sen. Don Hines (D) said, "We can't pass regressive laws hurting poor people." The bill now heads to the state House, where "a major political battle is shaping up" (Shuler, Baton Rouge Advocate, 5/18).