Prospects for health reform. (RX: Government)

WASHINGTON - Health care reform efforts in 1995 are expected to proceed slowly at the federal level, but developments could occur briskly in a number of state legislatures.

The takeover of Congress and many governors' seats and state legislatures by the Republicans should ease some of the pharmaceutical industry's fears but could cause problems for retail pharmacy. Establishment of a prescription drug benefit for Medicare beneficiaries is now unlikely, and Senate majority leader Senator Bob Dole (R., Kan.) has even hinted that Medicare could undergo significant cuts to help balance the budget.

For pharmaceutical companies talk of price controls has quieted down, especially in the states in which the marketplace has been given more freedom to operate.

But that doesn't mean that there will be any lack of reform legislation in the state legislatures. …