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Friday, Jul 17 2015

Full Issue

As Drug Costs Continue Climb, Large Pension Plans Cast Close Eye On Prices

The autoworkers retiree benefits trust is trying to glean how much drug makers will increase costs for specialty drugs -- and how those prices might affect everyone's bottom lines. And for one expensive hepatitis C drug, Gilead is restricting how many patients receive assistance paying for treatment.

Specialty drug costs are sky high, and insurers, doctors and hospitals are pushing back鈥攊n a phenomenon that played out during the most recent proxy season. One large pension plan was keen on finding out whether some pharmaceutical companies are at risk of pricing themselves out of the game. The $54 billion UAW Retiree Medical Benefits Trust, which provides health-care benefits to more than 750,000 retirees of the UAW union and their dependents, targeted six pharmaceutical companies this proxy season, according to a proxy-season wrap-up memo that law firm Gibson Dunn sent to clients on Wednesday. Three are working with the trust address to its concerns outside of a shareholder proposal, while the other three went up for vote. Two tried to block the resolutions based on Securities and Exchange rules but were denied. (Murphy, 7/16)

In a bid to push back against payers, Gilead Sciences is limiting enrollment to its patient assistance program for hepatitis C drugs, which helps people obtain the Sovaldi and Harvoni treatments when they lack sufficient insurance coverage or the financial wherewithal to get the medicines otherwise. (Silverman, 7/16)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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