Medicare and Medicaid could spend as much as $2 billion on Viagra and other lifestyle drugs between 2006-2015 in the absence of any legislative restrictions.

Grassley, chairman of the Senate Finance Committee, which has jurisdiction over Medicare and Medicaid funding, was moved to action after the New York comptroller announced Medicaid paid for erectile dysfunction drugs, such as Viagra, Cialis and Levitra, for convicted sex offenders.

The Congressional Budget Office estimated Medicare and Medicaid would spend $2 billion on these lifestyle drugs between 2006-2015, including through the new Medicare prescription drug benefit that begins in January 2006.

We live in a world of limited resources, and those dollars could be spent more wisely, Grassley said in a statement.

The Prescription Drug Coverage Stewardship Act of 2005 would not, however, prevent the government from paying for ED drugs if they are prescribed for treatments not related to sexual performance.