A bill to amend title XVIII of the Social Security Act so as to include, among the health insurance benefits covered under part B thereof, coverage of certain drugs.

Includes qualified drugs among the benefits covered under title XVIII of the Social Security Act (Medicare).

Establishes a Formulary Committee within the Department of Health, Education, and Welfare to: (1) determine which drugs and biologicals shall constitute qualified drugs for purposes of the benefits extended under this Act; (2) determine the allowable benefit of the various quantities, strengths, or dosage forms of qualified drugs or biologicals; and (3) publish annually a list of such qualified drugs, together with the allowable benefit for various quantities and strengths.

Provides for an advisory group to the Formulary Committee to furnish professional, technical, and scientific advice.