. >> denied completely because harrvone is not necessary because you do not meet the hepatitis c treatment. >> reporter: they're saying they won't pay for the miracle drug until her liver disease gets worse. her experience isn't uncommon. doctors find both private insurers and medicate frequently reject hepatitis c patients who are not deemed sick enough. to a patient like this woman, it is a cruel and possibliy life-threatening rejection. for medicaid programs which provide health programs for the poor as a pragmatic and necessary decision. this man's organization represents the nation's medicaid directors. >> if we were to simply open up the doors and say, yes, everyone who is suffering from this disease at any stage, at any condition, everyone gets it, we would be spending as much on that one drug as we would on every other single drug in the program combined. >> reporter: you're going to bankrupt the sim >> yes. we would have to figure out a way to-- bankrupt the system. -- to stop providing nursing health for frail seniors, prenatal care for pregnant women or something else >> reporte