Drug Utilization Review Act of 1989

Drug Utilization Review Act of 1989 - Amends part B (Supplementary Medical Insurance) of title XVIII (Medicare) of the Social Security Act to require the establishment of a Drug Utilization Review System (system) providing participating pharmacies, pharmacists, and dispensing physicians with prompt 24-hour electronic access to a medication profile for each Medicare beneficiary for whom they prescribe a covered outpatient drug. Requires that such system identify potential adverse drug reactions that may result from: (1) the interaction of the prescribed drug with other drugs being used by the beneficiary and with a known allergy, physical condition, or illness presented by the beneficiary; and (2) misuse of the prescribed drug.

Requires that participating pharmacies, pharmacists, and dispensing physicians having access to the system agree that: (1) no beneficiary will be required to disclose medication profile information as a condition of receiving benefits; (2) the beneficiary's medication profile will not be accessed without the beneficiary's specific and voluntary authorization; (3) data acquired will not be disclosed to anyone other than the beneficiary, except when consultations between those involved in the beneficiary's health care are medically necessary; and (4) each beneficiary shall receive written notice of such requirements. Penalizes, by fine and/or imprisonment, those guilty of the unauthorized disclosure of medication profile information.

Authorizes appropriations.

Directs the Secretary of Health and Human Services to conduct a study and report to the Congress by October 1, 1992, on the efficacy of expanding the system to include all Medicare-eligible outpatients who are inpatients and information on over-the-counter drugs and biologicals.