Hepatitis C drug costs challenges DOC budget

Covering the cost of a new treatment for hepatitis C treatment for a growing number of patients is a challenge for the Department of Corrections.

Oregon faces budget-busting costs for expensive new treatments for hepatitis C, and the issue is not limited to the state’s Medicaid program.

The prison system also faces higher costs from a new drug that cures many people of the potentially deadly disease, but costs the Department of Corrections roughly $70,000 per inmate for the 12-week treatment. The Legislature already approved an additional $3.2 million in a supplemental budget bill earlier this year to cover the drug Harvoni for inmates, after the number of inmates treated rose sharply in December. The increase was also part of the reason the Legislature boosted the Department of Corrections’ latest two-year budget for medical supplies by nearly 32 percent.

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Hepatitis C rates in Oregon soar above national average

"About 80 percent of the people who die from hepatitis C in Oregon are between 45 to 64 years old."

When it comes to viral infections in Oregon, hepatitis C is far deadlier than AIDS.

A report out this week shows that infections from hepatitis C remained fairly stable in Oregon between 2009 and 2013 but deaths from the virus climbed steadily over that period. They're now six times higher than deaths from AIDS.

"There are 5,000 people living with HIV in our state," said Dr. Ann Thomas, a public health physician. "There are almost 10 times as many people living with hepatitis C."

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State OKs new Hep C drug for Medicaid patients

Two drugs now available, but cost difference unclear

During the latter portion of 2014, Oregon officials and Hepatitis C patient advocates debated who would be able to receive a new, highly effective yet prohibitively expensive drug under the state’s Medicaid program.

Officials approved criteria that restricted the drug, Sovaldi, to very sick patients, with the caveat that they’d take up the issue again once new, perhaps more affordable drugs hit the market.

That appears to have happened sooner than expected. The director of the Oregon Health Authority, which oversees the state’s Medicaid program, the Oregon Health Plan, approved new criteria this month that permits some OHP beneficiaries with Hepatitis C to access a new drug: Harvoni. Hepatitis C is a disease that causes inflammation of the liver and can lead to liver failure or liver cancer.  

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