Louisiana Floats Subscription-Based Payment Model for Hep C Drugs

The Louisiana Department of Health is considering subscription-based payments for manufacturers of hepatitis C drugs as a way to control the state’s spending on drugs and to serve more Medicaid patients.

Under the proposal, the state would pay flat amounts to drugmakers over a several-year period in exchange for unlimited access to the drugs for anyone enrolled in the state Medicaid program or incarcerated in a state prison.

The department says the plan would cost less than what the state currently spends on hepatitis C drugs for the Medicaid and prison populations. The state paid about $35 million for hepatitis C drugs in 2017.