Low-Income Elderly Medicaid Drug Coverage Amendments of 1987 - Amends title XIX (Medicaid) of the Social Security Act to permit States to provide Medicaid coverage of prescribed drugs for poor individuals who are age 65 or older. Prohibits the State income eligibility level for such coverage from exceeding 150 percent of the Federal poverty level. Permits States to establish a resource eligibility test, but prohibits its being more restrictive than that established under the Supplemental Security Income program (title XVI of the Act).

Allows States to require a premium from prescription drug beneficiaries whose income exceeds the Federal poverty level if the State income eligibility level exceeds the Federal poverty level. Gives States a choice of one of two formulas for determining such premium.