Overview of Original Subscription Model and Features of LA and WA Proposals

Drug Pricing Lab
January 29, 2019

Dr. Peter Bach, Senator Bill Cassidy (R-LA), and Mark Trusheim put forward an alternative funding mechanism for prescription drugs in anĀ article published in the Journal of the American Medical Association. The subscription-based payment model is proposed to offer an unlimited amount of medications over a predetermined period of time specified in a multi-year contract with a state coalition of payers paying a flat annual subscription fee.

On January 10, 2019, officials in the state of Louisiana announced plans to proceed with a subscription-based payment model for providing hepatitis C treatment and have published a solicitation for offers to manufacturers to enter into negotiations. Additionally, Washington state released a request for proposals for a “modified subscription model” for treating HCV on January 22.

Here we present an overview of the original subscription-based Netflix model proposed and the proposals put forth by Louisiana and Washington.