Amends titles XVIII (Medicare) and II (Old Age, Survivors and Disability Insurance) of the Social Security Act to provide that eligible…

Official title: A bill to amend titles II and XVIII of the Social Security Act to include eligible drugs, requiring a physician's prescription or certification and approved by a Formulary Committee, among the items and services covered under the hospital insurance program.

Amends titles XVIII (Medicare) and II (Old Age, Survivors and Disability Insurance) of the Social Security Act to provide that eligible drugs, requiring a physician's prescription or certification, shall be included among the items and services covered under the hospital insurance program for the aged at a specified amount of payment. States that the reasonable allowance for eligible drugs furnished an individual pursuant to any one prescription and purchased by such individual at any one time shall be reduced by an amount equal to the applicable prescription copayment obligation which shall be $1. Establishes, within the Department of Health and Human Services, a Medicare Formulary Committee to compile and publish a Medicare Formulary listing the drugs deemed qualified for benefits under this Act, together with maximum allowable costs and additional information concerning such drugs. Sets forth requirements for the selection of drugs to be included in the Formulary.