By Peter Loftus 

The high price of new hepatitis C drugs is keeping them out of reach of many prison inmates, limiting the ability to cure the disease in one of the nation's largest infected populations.

Two treatments introduced late last year have steep price tags: Gilead Sciences Inc.'s Sovaldi has a list price of $84,000 per patient for a standard 12-week treatment, while Johnson & Johnson's Olysio costs $66,000 for the same duration.

The drugs promise faster treatment and a better chance of a cure than older drugs do, but some prisons aren't providing them because of budget constraints. Others are rationing them to inmates with the most serious cases. Some prisons have asked state lawmakers for funding to help pay for the drugs, so far without success.

The Federal Bureau of Prisons, which houses about 9% of the nation's inmates, gets a 44% discount on Sovaldi and Olysio through a U.S. Department of Veterans Affairs program, making the drugs a bit more affordable.

State prison systems, which house 58% of U.S. inmates, generally don't have access to these discounts, though some are exploring other ways to get price breaks.

Hepatitis C treatment usually isn't offered in local jails and prisons because inmates often are incarcerated less than a year, which isn't enough time to treat patients using the older drugs.

The virus is transmitted via contact with infected blood, including sharing needles for injected drugs, sharing personal items such as razors and sexual contact.

Many prisoners with hepatitis C became infected before they were incarcerated. Chronic infection with the virus can take years to progress, but if left untreated it can cause cirrhosis or liver cancer and require a liver transplant.

Public-health and prisoner advocates say the cost burden of the drugs could hamper an otherwise strong opportunity to tackle hepatitis C. Prison life is often well-suited to treatment because the staff can monitor inmates to make sure they take their pills.

Curing prisoners also could help reduce transmission of the virus in the general population after inmates are released.

"Close to 95% of these men and women will be back out in the community," said Michael Ninburg, executive director of the Seattle-based Hepatitis Education Project, which provides classes about hepatitis C to inmates in the Washington State Department of Corrections. "It's really a missed opportunity if we're not addressing hepatitis C in the correctional setting."

Some 12% to 35% of the 2.3 million inmates in the U.S. are estimated to be infected with hepatitis C, versus 1% to 1.5% of the general population, according to the Centers for Disease Control and Prevention.

Gilead says its pricing for Sovaldi reflects the drug's potential to cure hepatitis C and ward off more costly health-care services down the line.

J&J said it is having discussions with prison systems to negotiate a price for Olysio that ensures prisoners have access to it.

Spending on hepatitis C already had been on the rise in some prisons due to the 2011 introduction of two drugs that added about $50,000 in costs per patient. The drugs, known as protease inhibitors and sold by Merck & Co. and Vertex Pharmaceuticals Inc., generally improved cure rates to a range of 66% to 79% for people with the most common type of hepatitis C, from 40% to 45% for older drugs.

Sovaldi, when added to two older drugs, can shorten treatment duration to as little as 12 weeks from 48 weeks for the older drugs, while improving cure rates to about 90% for the most common type of hepatitis C. Olysio, which is typically given for 12 weeks combined with at least 24 weeks of the two older drugs, has shown a cure rate of about 80% for the most common type of the disease.

The Federal Bureau of Prisons saw spending on hepatitis C drugs more than double to $4.4 million in 2012 from 2011, partly because of the cost of protease inhibitors, a spokesman said. The bureau started making Sovaldi and Olysio available to inmates in February.

Meanwhile, state prison systems have taken different tacks with these two drugs.

In New York, nearly 60 inmates with the most serious cases of hepatitis C have begun using them, a spokesman said. California's system isn't yet offering the treatments but is revising its policies to incorporate them, said a spokeswoman for the court-appointed federal receiver that oversees health care in the system.

Elsewhere, Utah hasn't yet begun using the drugs in its prisons, the Illinois Department of Corrections recently approved their use, and Washington state and Wisconsin are dispensing them in a limited number of cases.

"Because these are so expensive and there's a limited budget, we're having to be even more selective about how to use our medical dollars wisely," said Robert Striker, an infectious-disease specialist at the University of Wisconsin who treats inmates in that state's system as a consultant.

Write to Peter Loftus at peter.loftus@wsj.com

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