State Ends Probe of Kaiser Over Viagra Policy

The state Department of Corporations said it has closed its investigation of Kaiser Foundation Health Plan’s policies regarding the anti-impotence pill Viagra after finding that the HMO earlier this year “may have encouraged” its doctors not to prescribe the drug because of cost considerations. In April, Kaiser, the nation’s largest nonprofit HMO, announced that, with rare exceptions, it would not cover the cost of the expensive treatment for sexual dysfunction. It then reversed its policy and included Viagra on its formulary five months later after the state opened its investigation. The department said Kaiser has agreed to resolve all pending patient grievances relating to Viagra coverage between April and September and will pay the state $250,000 for the cost of the investigation. Kaiser officials were not available for comment.