health care costs

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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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Six weeks ago, on this page, I lamented Roy Romanow’s failure to propose creative reforms to our country’s health care system. He simply demanded $15 billion more federal transfers to provinces, while expanding government monopoly into national homecare and a program to cover catastrophic pharmaceutical expenses. It’s not clear how he came up with the figure. Perhaps he just multiplied the $15 million cost of his Commission by one thousand?