Louisiana took a precedent-setting step last week to confront the costly public health challenges associated with the Hepatitis C virus, (HCV) at the same time embarking on a plan to eventually rid the state of HCV.  Health policy experts nationwide are watching the innovative program, anticipating that it could provide a model for states nationwide.

Secretary of the Louisiana Department of Health Dr. Rebekah Gee, speaking at the 2019 conference of the National Quality Forum, announced that the state had signed a partnership with Gilead Sciences to provide medication on a subscription model for HCV treatment of Medicaid and corrections patients, rather than paying prescription by prescription.  This will allow state healthcare officials to turn their focus from treatment to prevention, and – at the same time – guarantee that payments to Gilead will remain largely the same over the five year period of its contract with the state. By that time, it is anticipated that HCV will have been largely eradicated in Louisiana, ensuring that there will be little or no need for the expensive HCV medication.

The partnership between Gilead and the state of Louisiana was the result of a broad collaboration including the governor of the state, and Sen. Bill Cassidy (R-LA). As part of the process to design the program, the health department sought guidance from CMS on how to design the model so that it would not require a waiver of the Medicaid best price rule. Louisiana’s subscription model would be the first of its kind and the agreement between the state and the company will need CMS’ approval.

Applied Policy has championed the Louisiana approach, endorsing it in an article in Morning Consult late last year and explaining the possible impact on healthcare nationwide more recently in Inside Health Policy.  We endorse the innovative use of CMS funds to help address the rising cost of health care and, at the same time, deliver superior care to an underserved population.

x

x

x