Oregon Legislature Approves Proposal to Create Medicaid Drug Formulary, Other Health Bills

The Oregon Legislature has approved a final compromise on a the creation of a Medicaid drug formulary proposed by Gov. John Kitzhaber (D) that aims to save the state an estimated $7 million and help keep "afloat" its Medicaid program, called the Oregon Health Plan, the Associated Press reports. The Senate approved the formulary proposal (SB 819) on a 20-7 vote, and the House approved the bill 42-16 after negotiating an agreement with the governor (Beggs, Associated Press, 7/7). The bill creates a list of "clinically effective" and "cost effective" drugs that Medicaid beneficiaries can be prescribed. However, doctors and patients would not be "forced to stick" to the formulary, the Eugene Register Guard reports (Steves, Eugene Register Guard, 7/9). Under the formulary plan, beneficiaries can appeal a doctor's decision not to prescribe a drug not included on the formulary. The bill also gives lawmakers "oversight" of the formulary and creates a "physician education program" to make doctors aware of the "advantages and disadvantages" of prescribing "less expensive alternatives" (Associated Press, 7/7). To help push the bill through, Kitzhaber had made several concessions, including exempting from the formulary drugs that are used to treat cancer, HIV/AIDS and mental illnesses. According to the Portland Oregonian, Kitzhaber had previously "vowed" to veto the Department of Human Services budget, as well as other unrelated bills, if the Legislature did not approve the formulary (Mayes/Mayer, Portland Oregonian, 7/6).

More Legislature News
In other legislative action, lawmakers approved a bill (SB 9) that would create the Senior Prescription Drug Assistance Program, which would give low-income seniors as much as $2,000 in subsidies to help them purchase medicines. The Legislature also approved a proposal that would expand the Oregon Health Plan by 50,000 beneficiaries, as well as overhaul the program. This proposal cannot be implemented without federal government approval. In addition, lawmakers passed the Oregon Children's Plan, a $60 million version of a pilot program that detects newborns at risk of developing health and behavioral problems (Eugene Register Guard, 7/9).