Michigan program limits drugs for low-income patients
ASSOCIATED PRESS
LANSING, Mich., Dec. 16 — Michigan acted legally when it attempted to cut
health care costs by limiting the drugs doctors can prescribe to
low-income patients, the state Court of Appeals said in a decision
released Monday. It was a key victory for Michigan Department of
Community Health in a case being closely watched by other states eager to
curb rising prescription costs.
MICHIGAN’S PLAN, which went into effect in
February, allows doctors
to prescribe only certain medications to the 1.6 million patients who
rely on state aid, including Medicaid and programs for infants and the
elderly. Doctors must get state authorization for medications not on the
list. The list was developed by a committee of physicians and pharmacists
selected by Republican Gov. John Engler. Some drugs were allowed on the
list because they were considered medically necessary. In other cases,
drug companies were told to give discounts or risk being left off the
list. Drug companies and mental health advocates sued, saying the state
program is unconstitutional and endangers patients’ lives. A lower court
agreed and halted the program with a temporary injunction.
The Court of Appeals later lifted that
injunction while it heard
the case. On Monday, the appeals court permanently lifted the injunction,
saying the drug companies and mental health advocates failed to show
their case was likely to succeed. “In the absence of a specifically
defined legislative limitation, when the (Department of Community Health)
is delegated the responsibility of establishing and administering health
care programs, it also must be accorded concomitant powers to implement
policies to promote that endeavor,” the court said. © 2002 Associated
Press.
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