Louisiana proposes subscription payment model for hep C drugs

Louisiana is communicating with CMS to explore a subscription-based payment model for hepatitis C treatments, according to a proposal the Louisiana Department of Health released this week. 

The health department called the state's high number of hepatitis C infections a public health crisis it cannot adequately address due to the high cost of antiviral treatments.

"Unfortunately, at current prices, only a tiny fraction of those who need the treatment can receive it," the health department said in the proposal.

Under the proposed model, the state would pay drugmakers a set price for unlimited access to hepatitis C drugs for Louisiana's Medicaid recipients and correctional system population.

"This payment would create an incentive for the state to find and treat as many people enrolled in Medicaid as possible," the health department said in the proposal. "For the drug manufacturer, this payment model would guarantee a fixed purchase price for a contracted period of time from a large volume payer and would enable the drug manufacturer to expand their product reach into populations that otherwise would not have received treatment."

Comments on the proposal are due Aug. 24.

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