A bill to limit medicare and medicaid payments for certain drugs.

Amends title XVIII (Medicare) and title XIX (Medicaid) of the Social Security Act to prohibit Medicare and Medicaid payments for any new drug or drug similar to a new drug: (1) which has been provisionally approved by the Secretary of Health and Human Services; (2) which may be dispensed only upon prescription; (3) for which the Secretary has issued a notice of a hearing on a proposed order to withdraw approval of such drug because the drug is not effective for all the uses prescribed in its labeling; and (4) for which the Secretary has found no compelling medical need. Continues such prohibition until the Secretary withdraws such proposed order.