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Investing.com -- {{6365|Gilead Sciences (NASDAQ:GILD)}} stock fell 2.8% Monday morning following reports that Health and Human Services Secretary Robert F. Kennedy Jr. plans to dismiss all members of a key advisory panel that influences insurance coverage requirements for preventive medications, including HIV drugs that Gilead produces.
The Wall Street Journal reported Friday that Kennedy intends to remove all 16 members of the U.S. Preventive Services Task Force, viewing them as too "woke," according to people familiar with the matter. The task force plays a crucial role in determining which preventive health measures, screenings, and medications insurers must cover at no cost to patients under the Affordable Care Act.
The panel’s recommendations directly impact coverage for HIV-prevention drugs, an important product category for Gilead, which manufactures PrEP medications Truvada and Descovy. These medications help prevent HIV infection in high-risk individuals.
The task force has been advising the federal government on preventive health matters since 1984, with expanded powers granted under the 2010 Affordable Care Act. The panel consists of volunteer medical experts vetted for conflicts of interest who evaluate scientific evidence to determine effective interventions.
The potential dismissal follows a Supreme Court decision in June that upheld the constitutionality of the task force appointments while confirming the HHS Secretary’s authority to remove panel members. Critics have accused the task force of embedding "left-wing ideological orthodoxy" in its recommendations, citing its language around racial discrimination and use of terms like "pregnant persons."
The Health and Human Services Department has not provided specific details regarding Kennedy’s plans for the task force.