NCHC

National Coalition On Health Care

  • About Us
    • Members and Supporters
    • Board of Directors
    • Staff
    • Annual Reports
  • Policy
    • COVID-19 Response
    • Make Prescription Drugs More Affordable
    • Eliminate Surprise Medical Billing
    • Make Health Care Affordable and Accessible
    • Promote a High-Value Health Care System that Supports Vulnerable Populations
  • Blog
  • Events
  • Newsroom
    • Press Releases
    • NCHC In The News
    • Policy Correspondence
    • Fact Sheets & Issue Briefs
  • Get Involved
    • Become a Member
    • Become a Funder
  • Contact Us
  • Special Projects
    • NCHC Round Table Series on Health Care Affordability and Transparency

An Aftershock Bigger Than the Initial Shock

October 10, 2014 By Larry McNeely

Tweet
Share

By John Rother

Situated along the famous San Andreas fault in Northern California’s Bay Area, Gilead rattled the health care market this year by pricing its Hepatitis C treatment Sovaldi at $84,000. After months of unabated outrage from policymakers, consumer, employer, and patient organizations over the price of Sovaldi, Gilead has triggered an aftershock even more powerful than its initial shock with a new Hep C treatment priced at a staggering $94,500.

Gilead has made clear that it values Wall Street above the interests of patients, the insured, and taxpayers.

Gilead justifies its pricing by pointing out that its new formulation is priced less than the previous combination of its old therapy with other treatments. However, this argument is a bit disingenuous because Sovaldi’s $84,000 price tag constituted the bulk of the former combo drug price. Moreover, Gilead admits that it prices it products based on the preceding product in the therapeutic area rather than on any calculation of value. That’s a dangerous and unsustainable practice that can only lead to one thing: ever increasing prices.

The good news is that Sovaldi has helped start a national dialogue on how to sustain the biomedical innovation that is so important to our future. The bad news is that Gilead is severely testing the limits of this sustainability.

We had better find solutions to the sustainability question or else we risk witnessing our entire health care system crumble from “The Big One.”

Filed Under: Blog

Mission

To bring together key stakeholders in order to achieve an affordable, high-value health care system for patients and consumers, for employers and other payers, and for taxpayers.

Signup for NCHC Newsletter

NCHC Recent Policy Correspondence

  • The Budget Reconciliation Process and NCHC Priorities in 2021
  • NCHC STATEMENT ON BICAMERAL AND BIPARTISAN SURPRISE BILLING LEGISLATION, “NO SURPRISES ACT,”
  • NCHC STATEMENT ON PART D REBATE SAFE HARBOR REPEAL AND “MOST FAVORED NATION” DEMONSTRATION
  • NCHC Statement On The Trump Administration’s “Most-Favored-Nation” Drug Pricing Executive Order
  • NCHC Statement on the Trump Administration’s Executive Orders
...More Policy Correspondence

National Coalition on Health Care

About Us

The National Coalition on Health Care (NCHC) was formed more than two decades ago to help achieve comprehensive health system change. We aim to be a leader in promoting a healthy population and a more effective, efficient and responsive health system that provides quality care for all. NCHC is a nonpartisan, nonprofit organization of organizations. Our growing Coalition represents more than 80 participating organizations, including medical societies, businesses, unions, health care providers, faith-based associations, pension and health funds, insurers, and groups representing consumers, patients, women, minorities and persons with disabilities. … Read More...

Interim CEO

Shawn Martin

CHAIRMAN

Jack Lewin
Principal and Founder
Lewin and Associates, LLC

MISSION

To bring together key stakeholders in order to achieve an affordable, high-value health care system for patients and consumers, for employers and other payers, and for taxpayers.

CONTACT US

900 16th Street NW, Suite 400
Washington, DC 20006
contactus@nchc.org

Connect With NCHC

  • Email
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Recent News & Posts

  • All Payer Claims Databases and Health Care Affordability
  • National Coalition on Health Care and West Health, The Burden of High Drug Prices on Communities of Color
  • NCHC ANNOUNCES RETIREMENT OF PRESIDENT JOHN ROTHER
  • NCHC & West Health Hill Briefing: The Burden of High Drug Prices Among Communities of Color
  • Reference Pricing: A Bipartisan Solution to High Hospital Prices?

Recent Tweets

Tweets by NC_HC

Copyright © 2022 · Outreach Pro Theme on Genesis Framework · WordPress · Log in