An implantable incontinence device and method provides for occluding the urethra in preventing urine leakage. The device includes an occluding member connected to a control mechanism. The occluding member is movable from a contracted (occlusive) condition to an expansive (non-occlusive) condition by activating and deactivating the control mechanism. A drug coating is disposed on a portion of the implantable incontinence device. The drug coating elutes a bioaffecting or pharmaceutical composition to minimize capsular tissue formation, so that prevention of urine leakage can be facilitated.