UnitedHealth Group Will No Longer Cover Acid Reflux Medication Nexium

Main Category: Pharma Industry / Biotech Industry
Also Included In: Public Health
Article Date: 13 Sep 2006 - 14:00 PST

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Officials for UnitedHealth Group on Thursday announced that the company will no longer cover the proton pump inhibitor Nexium, a medication for acid reflux manufactured by AstraZeneca, because of the availability of less expensive, equally effective treatments, the AP/Wall Street Journal reports. Tim Heady, CEO of the UnitedHealth pharmacy benefit management division, said that the company reached the decision after a review of proton pump inhibitors and a refusal by AstraZeneca to reduce the price of Nexium. UnitedHealth, which spends $10 billion annually on medications, could save $150 million through the decision, company officials said. The decision took effect this month for most UnitedHealth health plans and will take effect for the remainder of the plans early next year. According to the AP/Journal, "UnitedHealth had expected costs in the category to slow after generic and over-the-counter versions of Priolsec, the predecessor drug to Nexium, became available in 2003. But that didn't happen." AstraZeneca spokesperson David Albaugh said that the decision by UnitedHealth will not prompt the company to revise sales estimates for the year. Jason Napodano, a pharmaceutical industry analyst at Zacks Independent Research, said that the decision likely will not have a large effect on sales for AstraZeneca (AP/Wall Street Journal, 9/7).

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