At least 15 states are introducing legislation that would "force drug manufacturers and their distributors" to pay for treatment for opioid addicts, the Associated Press reports.
Why it matters: The death toll from opioid addiction has been on the rise, and public health experts have placed the blame on manufacturers. But, per the AP, "drugmakers and distributors argue that...the cost increases would eventually be absorbed by patients or taxpayers."
Quick update:The Centers for Disease Control and Prevention today announced the E. coli outbreak continues to spread — so far, 22 states have reported 98 people are ill with a 53% hospitalization rate. Ten of those have kidney failure from hemolytic uremic syndrome.
What's happening: CDC also says this strain is producing "a type of toxin that tends to cause more severe illness, which may explain why there is a high hospitalization rate."
AbbVie CEO Rick Gonzalez about patients who have hepatitis C during the drug company's Q1 earnings call yesterday:
"This is a market that is going to be around for a long, long time and be a very big market. And I think now, essentially you have us and one competitor who have the lion's share of this marketplace."
The bottom line: AbbVie and Gilead Sciences, through Gonzalez' own lens, have become the dominant options for patients who have hepatitis C. And AbbVie's main hepatitis C drug, Mavyret, appears to be winning over physicians in part because it costs less than Gilead's main Harvoni product — although Mavyret still retails for about $26,400 for a regular course of treatment before discounts.
The next big battle in health care will almost certainly be about costs, and right now it’s largely confined to industry infighting and finger-pointing. But mounting frustration from employers and employees could put cost controls on the table faster than you might think.
The big picture: Frustration over health care costs is one thing. But the greater threat to the health care industry is one that’s just starting to percolate — concern that we’ve already maxed out the existing tools to control those costs.
