Jaycee Nguyen BIOL 396-6 October 24, 2014
Novel Solution
Sovaldi is a new innovative drug found to affectively treat Hepatitis C (HCV)
with low side effects compared to other treatment therapies currently be offered due. Not
only does this treatment offer positive results based on current clinical trials, but this drug
also covers HCV genotype 1-6. Currently Gilead is selling Sovaldi at $1,000-per-pill.
With such a large market in the United State alone, roughly 3.5 million people suffer
from chronic HCV; it seems unnecessary to charge such high amounts. In addition to
Gilead's steep treatment price within the United States, Gilead has provided certain
selected international manufacturing companies in countries like India and Egypt, where
HCV is one of the most prevalent diseases, to manufacture and selling the same pill and
treatment for just a fraction (1%) of the US cost.
Pros to Sovaldi's High Drug Cost Allows Gilead to earn back the initial cost of the Sovaldi formula.
Cons to Sovaldi's High Drug Cost Increase drug trafficking (if US citizens purchases Sovaldi internationally and smuggles in back into the US for resale). Severely limits the number of people with HCV who can afford treatment.
Based on the current situation, if Gilead refuses to lower drug cost, my novel
solution would be to temporarily increase medical insurance premiums and social
security tax, to allow for insurance companies and Medicare/Medicaid to collect enough
funds to help cover a portion of the treatment cost and lower the financial burden it may
have on some patients. This approach could be decided amongst the citizens of the US
by making it a proposition and having voters decide if everyone is willing to evenly
distribute the financial burden.
Total Cycles Cost for Patient Need All 3.5 Cost (out (Estimation mil Paid of pocket) By Insurance 12 weeks (7 $84,000 x 12 = 84 per $0 pills) treatment
People Insurance Cost Per Needing Premium Pill Treatment Increase
Insurance Coverage
3.5 mil
$0
$1,000
0%
$100 per month ($4.2 bil increase in insurance income each year)
60% (insurance pays $50,400)
12 weeks (7 $33,600 x 12= 84 per pills) treatment
$116.4 bil
3.5 mil
$1,000
$150 per month ($6.3 bil increase in insurance income each year)
80% (insurance pays $67,200)
12 weeks (7 $16,800 x 12 = 84 per pills) treatment
$224.7 bil
3.5 mil
$1,00