States take action to curb costs of hepatitis C pills Sovaldi and Harvoni

With the launch of Harvoni — the newest hepatitis C pill from Gilead Sciences — states across the country are taking action to brace for the looming costs associated with the pill's high price, according to a Forbes report.

Gilead Sciences' first generation hepatitis C pill, Sovaldi, has a success rate of more than 90 percent, and the typical 12-week drug regimen of Sovaldi costs $84,000. Guidelines also suggest taking Sovaldi with other drugs, adding to the overall care costs.

Sovaldi's high price tag has drawn extensive criticism. In July, Sens. Ron Wyden (D-Ore.), chairman of the Senate Finance Committee, and Chuck Grassley (R-Iowa), the Judiciary Committee's ranking member, sent a letter seeking justification from Gilead for Sovaldi's hefty price tag. "Given the impact Sovaldi's cost will have on Medicare, Medicaid and other federal spending, we need a better understanding of how your company arrived at the price for this drug," the senators wrote in the letter.

Due to the high price of Sovaldi, 35 states require prior authorization before Medicaid patients can be prescribed the drug, according to Forbes. This means patients in those states are required to have a liver biopsy to determine the severity of the disease before receiving the drug.

To help curb the costs of Sovaldi, Arizona has implemented a "once in a lifetime" rule. The rule states Medicaid patients will have treatment with Sovaldi paid for only one time. Illinois has also taken measures to help curb costs by requiring Medicaid patients to meet more than 24 criteria before being prescribed the drug, according to the report.

With an even higher price than Sovaldi, Gilead's newest hepatitis C pill Harvoni costs $94,500 for a 12-week course of treatment, which has states concerned, since many patients who need hepatitis C treatments have low incomes.

Although it is unclear how state Medicaid programs will handle the cost of Harvoni, it is likely prior approvals and more restrictions will be used when prescribing the drug, according to the report.

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