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Insurers set limits on Viagra
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April 29, 1998: 2:48 p.m. ET
Payouts for impotence drug face caps; men must prove condition
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NEW YORK (CNNfn) - Insurers are putting a lid on payments for Viagra, the hot new impotence drug from Pfizer Inc. that has given renewed hope to millions of American men.
Several of the nation's big insurers, fearing huge payouts, are requiring medical proof of impotence and are limiting the number of pills covered by their policies.
A few insurers may even refuse to cover Viagra treatments altogether until an industry stance is set.
Cigna Healthcare, a unit of Cigna Corp., will require men to show they have a documented condition of impotence already being treated by other means.
And the impotence cannot be caused by use of other drugs, such as anti-depressants, Cigna said.
Only then will patients get up to six pills a month, and must pay for any more on their own. A single Viagra pill, according to Pfizer, provides erectile function prior to intercourse. Each pill costs up to $10.
"We are evaluating this drug as we would any drug," said Cigna spokesman Mark DiGiorgio, adding that the company's pharmaceutical and medical team agreed on the six-pill limit. "We tried to be reasonable," he said.
Kaiser Permanente, the big non-profit health maintenance organization, said it will pay only for cases of erectile dysfunction linked to physical illnesses like diabetes or high blood pressure
"We have not formulated our policy," said Dean Mayer, a Kaiser spokesman, who said an announcement may come "very soon."
"We look at many issues, most importantly, quality -- is this drug effective, is it safe?" said Mayer. "Is cost a part of the equation? Sure, but it is not the driver."
Viagra has been one of the most successful drug launches ever, with about 20,000 Viagra prescriptions written every day since Pfizer got its Food and Drug Administration approval for the drug in late March.
Pfizer's stock (PFE) has soared nearly 50 percent since the beginning of the year, but its shares were off slightly Wednesday, down 11/16 at 112-11/16 following the news.
Cigna shares (CI) were off 2-3/8 at 203-1/8 Wednesday. 
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