Novel purchasing strategy to increase access to HCV drugs

Novel purchasing strategy to increase access to HCV drugs PharmacoEconomics & Outcomes News 804, p1 - 2 Jun 2018 Novel purchasing strategy to increase access to HCV drugs A novel purchasing strategy could increase access to drugs for the treatment of hepatitis C virus (HCV) infections in Medicaid beneficiaries in the US, according to authors of an article published in the Annals of Internal Medicine. Curative treatments for HCV were introduced in the US in 2013. A report by experts convened by the National Academies of Sciences, Engineering, and Medicine to develop a national strategy for eliminating HCV infection concluded that these new treatments could reduce the incidence of HCV by 90% by 2030. To meet this target, all patients with any stage of HCV should receive this new treatment regimen, but the treatment costs thousands of dollars per patient and is unaffordable for the majority of patients and health insurers. It has been estimated that only 20 000 Medicaid beneficiaries per year will receive the treatment, despite 700 000 being eligible for it. The new treatments have wholesale acquisition costs of $54 000–$187 000. Implemention of a novel Medicaid drug purchasing strategy has the potential to increase access to the drugs without increasing state and federal costs, commented the authors. A state would make a contract with a drug company to pay a lump sum of $200 million (saving costs of $40 million shared between state and federal governments) in return for the company providing a 100% rebate on drugs for Medicare beneficiaries in the state. This would enable the state to treat more eligible patients, and the company’s profits would increase, providing a financial incentive to enter into the agreement. The strategy works by decoupling revenue from price per pill. However, to achieve cost savings, states would need to restrict the use of drugs not subject to the lump-sum payment. "This purchasing strategy may dramatically increase access to drugs for HCV infection in the Medicaid program without increasing state and federal costs. We can begin to eliminate this condition in the United States if several states implement this approach," concluded the authors. Sood N, et al. A Novel Strategy for Increasing Access to Treatment for Hepatitis C Virus Infection for Medicaid Beneficiaries. Annals of Internal Medicine : 15 May 2018. Available from: URL: http://dx.doi.org/10.7326/M18-0186 803322332 1173-5503/18/0804-0001/$14.95 Adis © 2018 Springer International Publishing AG. All rights reserved PharmacoEconomics & Outcomes News 2 Jun 2018 No. 804 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png PharmacoEconomics & Outcomes News Springer Journals

Novel purchasing strategy to increase access to HCV drugs

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Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer International Publishing AG, part of Springer Nature
Subject
Medicine & Public Health; Pharmacoeconomics and Health Outcomes; Quality of Life Research; Health Economics; Public Health
ISSN
1173-5503
eISSN
1179-2043
D.O.I.
10.1007/s40274-018-4965-4
Publisher site
See Article on Publisher Site

Abstract

PharmacoEconomics & Outcomes News 804, p1 - 2 Jun 2018 Novel purchasing strategy to increase access to HCV drugs A novel purchasing strategy could increase access to drugs for the treatment of hepatitis C virus (HCV) infections in Medicaid beneficiaries in the US, according to authors of an article published in the Annals of Internal Medicine. Curative treatments for HCV were introduced in the US in 2013. A report by experts convened by the National Academies of Sciences, Engineering, and Medicine to develop a national strategy for eliminating HCV infection concluded that these new treatments could reduce the incidence of HCV by 90% by 2030. To meet this target, all patients with any stage of HCV should receive this new treatment regimen, but the treatment costs thousands of dollars per patient and is unaffordable for the majority of patients and health insurers. It has been estimated that only 20 000 Medicaid beneficiaries per year will receive the treatment, despite 700 000 being eligible for it. The new treatments have wholesale acquisition costs of $54 000–$187 000. Implemention of a novel Medicaid drug purchasing strategy has the potential to increase access to the drugs without increasing state and federal costs, commented the authors. A state would make a contract with a drug company to pay a lump sum of $200 million (saving costs of $40 million shared between state and federal governments) in return for the company providing a 100% rebate on drugs for Medicare beneficiaries in the state. This would enable the state to treat more eligible patients, and the company’s profits would increase, providing a financial incentive to enter into the agreement. The strategy works by decoupling revenue from price per pill. However, to achieve cost savings, states would need to restrict the use of drugs not subject to the lump-sum payment. "This purchasing strategy may dramatically increase access to drugs for HCV infection in the Medicaid program without increasing state and federal costs. We can begin to eliminate this condition in the United States if several states implement this approach," concluded the authors. Sood N, et al. A Novel Strategy for Increasing Access to Treatment for Hepatitis C Virus Infection for Medicaid Beneficiaries. Annals of Internal Medicine : 15 May 2018. Available from: URL: http://dx.doi.org/10.7326/M18-0186 803322332 1173-5503/18/0804-0001/$14.95 Adis © 2018 Springer International Publishing AG. All rights reserved PharmacoEconomics & Outcomes News 2 Jun 2018 No. 804

Journal

PharmacoEconomics & Outcomes NewsSpringer Journals

Published: Jun 2, 2018

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