New Drug Shocks Health Care Industry

An aspiring law school student and experienced political analyst, Charles Maurice Stam is a former member of the Center for the Study of the Presidency and Congress Presidential Fellows program. While with the organization, Charles M. Stam covered a number of politically relevant topics, including counterinsurgency and health care.

Sovaldi, a new treatment for hepatitis C, has the apparent ability to cure patients of the disease with 90 percent certainty. Unfortunately, the drug costs an estimated $1,000 per day. The big debate is now who can afford the drug and what would happen if insurance companies covered it?

The affordable care act is still in its infancy, and for some, it only recently became viewed as a viable health care option. In order to cover Sovaldi, insurance companies would need to drastically raise premiums in order to keep their current profit margins. This is, of course, unless the government enforces new regulations. There is no known vaccination for hepatitis C, and Sovaldi manufacturer Gilead claims that the drug’s effectiveness makes it cheaper. Doctors will also have a difficult time not prescribing the drug, which has few side effects.