The Centers for Medicare & Medicaid Services yesterday approved Louisiana’s Medicaid plan amendment allowing supplemental rebate agreement negotiations with prescription drug makers for Hepatitis C therapies. The new “modified subscription” model allows the state to cap gross expenditures for the Hepatitis C prescriptions for Medicaid and requires manufacturers to provide the drug’s lowest price negotiated in all states in the Medicaid program. “The high cost of prescription drugs is one of the greatest challenges in our health care system,” said CMS Administrator Seema Verma, “and Louisiana’s innovative approach to leveraging a subscription model to promote access to hepatitis C therapy is a great example of how states can lead in designing solutions.” The amendment goes into effect July 1. CMS has approved similar state plan amendments for Washington, Oklahoma, Michigan and Colorado. This is the second one to focus on Hepatitis C.

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