Although health officials believe the governor has the authority to adopt a list without legislative approval, Huntsman has decided now is not the time.
"It's unfortunate that it didn't go through," said the governor's spokeswoman, Tammy Kikuchi. "But there are many health care issues that also need attention. We will perhaps try for this another year."
State Health Director David Sundwall used stronger words to express his disappointment.
"If I were in the Legislature, I would be scolding me [as health director] for not having done this before," said Sundwall, who pitched the program as a way to slow soaring Medicaid costs.
Citing data from some of the 26 other states that have restricted Medicaid reimbursement to a predetermined list of medicines, Sundwall estimates the drug list would cost $150,000 to launch but would wring $5 million in savings from Utah's $1.5 billion Medicaid budget.
That estimate was based on limiting the program to a pilot test on two drug classes - acid reflux and cholesterol-lowering medicines - a scaled back version of Sundwall's original plan.
But lawmakers at Tuesday's budget hearing, some of whom were in the 2003 Legislature that rejected a similar proposal, said they want more evidence.
"I haven't heard anything yet that makes me think we made a bad decision two years ago. I'm not convinced more information will allow us to make a better decision," said Senate President John Valentine, rejecting one senator's suggestion to further debate the proposal in September.
The committee's vote came after two hours of testimony from mental health advocates and lobbyists for the pharmaceutical and biotechnology industries. They oppose a drug list on the grounds that it will delay patients getting the medications they need and dispute the claim it would save the state money.
Citing a legislative study on Maine's preferred drug list, drug manufacturer lobbyist Barbara Boner said it was shown to overwhelmingly cause patient care to suffer by forcing doctors to jump through more red tape to get certain medicines and, as a result, increase emergency room visits.
Other negative studies cited were financed by the pharmaceutical industry, which has dumped thousands of dollars into legislative campaigns.
Backing a preferred drug list are the Utah Medical Association, pharmacists and advocates for the disabled, elderly and poor. But organizations that look out for the mentally ill don't like the idea because they fear psychotropic medicines will be targeted.
These medicines are among the most widely used by Medicaid patients and the most costly, said Sheri Wittwer, director of NAMI-Utah. "But for the mentally ill, drugs are the treatment. They don't have surgery or other treatments as an option."
Cutting off the supply of such drugs could lead to an increase in criminal behavior, eating into law enforcement and Corrections budgets, Wittwer said.
