Before 1990 many state Medicaid programs maintained ''restrictive'' fo
rmularies, which denied reimbursement for unlisted prescription drugs.
This type of formulary has been criticized for denying important medi
cations to poor, medically needy persons. As part of the Omnibus Budge
t Reconciliation Act of 1990, restrictive formularies in Medicaid prog
rams were disallowed. Based on research into the 200 top-selling presc
ription drugs in the United States, we conclude that eliminating Medic
aid restrictive formularies improved access to a subset of the 200 bes
t sellers, but that the majority of these products offered only questi
onable or no additional therapeutic benefit.