Shares of Gilead Sciences (NASDAQ:GILD) dropped 2.8% Monday morning after reports emerged that U.S. Health and Human Services Secretary Robert F. Kennedy Jr. intends to dismiss all 16 members of a prominent advisory panel that guides insurance coverage for preventive healthcare, including HIV medications produced by Gilead.
According to The Wall Street Journal, Kennedy views the current U.S. Preventive Services Task Force as excessively “woke,” citing sources familiar with the situation. The task force’s recommendations play a significant role in determining which screenings, treatments, and preventive drugs must be covered by insurance providers at no cost to patients under the Affordable Care Act (ACA).
Gilead, which manufactures the leading HIV-prevention medications Truvada and Descovy, has a vested interest in the task force’s guidance. These PrEP (pre-exposure prophylaxis) drugs are considered vital for reducing HIV transmission among at-risk populations, and their no-cost coverage under the ACA has been supported by the task force’s recommendations.
Established in 1984 and granted broader powers under the ACA in 2010, the panel is composed of volunteer health experts who assess clinical evidence to inform federal preventive health policy. Members are screened for conflicts of interest and serve as independent advisors.
The reported plan to remove the task force members follows a June Supreme Court ruling affirming the constitutionality of the group’s appointments while also recognizing the HHS Secretary’s legal authority to remove them. Critics of the task force accuse it of pushing “left-wing ideological orthodoxy,” citing language in its recommendations related to racial disparities and the use of inclusive terms like “pregnant persons.”
As of now, the Department of Health and Human Services has not confirmed any specific steps Kennedy will take regarding the task force.
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