Louisiana Purchase: State Eager To Test “Netflix Model” For Rx Spending
A subscription payment model could be a solution for high-priced drugs, Louisiana thinks – and appears to have at least one manufacturer willing to participate. Will the Trump Administration agree?
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Purchasing contract for state Medicaid and Corrections programs would last up to five years and aim to treat more than 10,000 patients in first year.
A subscription model for drug pricing isn’t an entirely new idea, but it is a timely one. If nothing else, the idea of a “Netflix” approach appeals to media savvy audiences.
“Authorized generics” for Gilead's leading hepatitis C brands stands out from prior, largely symbolic responses to the lower list prices. This is not a political move, but a business one. It is also the clearest demonstration yet of why pricing reforms are necessary if lower list prices are the policy goal.