NCJ Number
122707
Journal
State Legislatures Volume: 16 Issue: 4 Dated: (April 1990) Pages: 12-15
Date Published
1990
Length
4 pages
Annotation
The use of the costly drug AZT to treat HIV-infected people has major policy and funding implications for States.
Abstract
AZT is an expensive drug, costing about $6,400 a year per patient. This cost could be halved if physicians follow a new Food and Drug Administration recommendation to reduce the dosage by 50 percent. One researcher estimates that prescribing AZT can generally reduce the costs of treating AIDS and AIDS-related complex by $386 million in just one year. AIDS coverage to fund AZT costs in self-insured health plans is limited or nonexistent, and State programs for the medically indigent lack adequate funding. Medicaid may only cover AZT for patients with full-blown AIDS, while Medicare limits its coverage to people who have been disabled for 2 years or who are over 65 years of age. Treatment costs for the 118,000 Americans infected with the AIDS virus are estimated at $8.5 billion by 1991 and $35 billion by 2000. An investment in early AZT treatment may save States money in the long run. Because effective drug treatment can prolong the lives of those with HIV infection, these individuals can continue working and keep their insurance, thus reducing their reliance on Medicaid and other social service programs. In addition to the issue of whether States will pay for AZT through public programs, States have a responsibility to insure that HIV-positive individuals do not lose access to private insurance coverage due to discriminatory activities. Congress has appropriated $29.6 million to help States purchase AZT for low-income AIDS patients, but this Federal assistance requires a 50-percent match by States.