Louisiana Forges Ahead With Novel Plan To Use Netflix-Like Subscription System To Bring Down Drug Costs
Louisiana will pay a flat fee for unlimited access to very expensive hepatitis C medication for five years, and will be able to treat as many people as it can, rather than pay a per-patient drug price. The deal allows the state to potentially eradicate the disease in a short time while maintaining a stable budget by spreading the cost over several years.
NPR:
'Subscription' Model For Hepatitis C Meds Could Help States Limit Drug Costs
Louisiana officials announced a deal Wednesday with Asegua Therapeutics, a subsidiary of Gilead Sciences, that would allow the state to provide hepatitis C treatment to its Medicaid and prison populations. They also secured the necessary clearance from the federal government Wednesday for a novel approach to paying for the drugs and expect the program to start July 15. In Louisiana, at least 39,000 people either on Medicaid or in the prison system have hepatitis C, a viral infection that attacks the liver. (Simmons-Duffin and Kodjak, 6/26)
The Associated Press:
Louisiana Reaches 'Netflix-Model' Deal To Tackle Hepatitis C
Health Secretary Rebekah Gee celebrated the deal's signing with Gov. John Bel Edwards at a New Orleans health clinic. She said Louisiana hopes to treat 31,000 of the estimated 39,000 Medicaid patients and prisoners with the disease by the end of 2024. By comparison, the state treated about 1,100 people last year, Edwards said. "It just was unacceptable. We knew we had to do better," said the Democratic governor. (DeSlatte, 6/26)
The Advocate:
In Deal With Drug Firm, Louisiana To Pay Up To $58M Yearly For Hepatitis C Drug
Louisiana is the first state in the nation to start plotting a subscription model like this one, dubbed the "Netflix model," based on the unlimited-access, single-price approach, Gov. John Bel Edwards said at a news conference. “It is time that Louisiana lead,” Edwards said to applause from a roomful of Louisiana health care providers and policymakers. “And we are leading.” (Woodruff, 6/26)
In other pharmaceutical news —
The New York Times:
Drugmaker Deals Are Near Record Pace In 2019, But Investors Don’t Love Them All
A rush of acquisitions this year is reshaping the drug industry. But investors haven’t universally welcomed the deal-making. AbbVie’s agreement on Tuesday to buy Allergan, in a deal valued at $63 billion, provided the latest evidence: AbbVie’s shares fell 16 percent, their worst day in six years. Months earlier, investors pushed the stock of Bristol-Myers Squibb down 14 percent after the announcement that it would buy Celgene for $74 billion, the year’s biggest pharmaceutical deal. (Grocer, 6/27)
Stat:
Lawmakers Press Gilead For Truvada Pricing Info
A congressional committee is asking Gilead Sciences (GILD) to explain its pricing policies for the Truvada HIV prevention pill, the latest effort to pressure the drug maker over a medicine that has stirred controversy thanks to its high cost and federally funded research support. In a letter sent on Wednesday to the company, the House Committee on Oversight and Reform asked for explanations for Truvada price hikes over the past decade, as well as correspondence with federal agencies about donations to the U.S. government and patents related to HIV prevention. The committee also wants data on the cost to manufacture Truvada and a forthcoming follow-up pill called Descovy. (Silverman, 6/27)
Kaiser Health News:
How Black Pharmacists Are Closing The Cultural Gap In Health Care
After a health insurance change forced Bernard Macon to cut ties with his black doctor, he struggled to find another African American physician online. Then, he realized two health advocates were hiding in plain sight. At a nearby drugstore here in the suburbs outside of St. Louis, a pair of pharmacists became the unexpected allies of Macon and his wife, Brandy. Much like the Macons, the pharmacists were energetic young parents who were married — and unapologetically black. (Anthony, 6/27)
