Rising care costs In asubscription model, payers agree to a fixed cost to access aparticular drug over a set period of time. (Photo:Shutterstock)

Medicaid programs in Louisiana and Washington have pioneered theuse of prescription drug subscriptions for newhepatitis C pharmaceuticals, with a goal of expanding patientaccess and containing costs.

But a new report by the RAND Corporation cautions that drugsubscription models are relatively new and untested, and they maynot ultimately reduce costs for public and private payers. Payerscould end up spending more under drug subscriptions than they dowith the traditional cost-per-unit models, the paper argues.Moreover, private payers and Medicare drug plans cannot implementdrug subscriptions without regulatory changes, it notes. But thewider push toward value-based health care means that drugsubscriptions may be an area of growth.

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Karen Sloan

Karen Sloan is the Legal Education Editor and Senior Writer at ALM. Contact her at [email protected]. On Twitter: @KarenSloanNLJ Sign up for Ahead of the Curve—her weekly email update on trends and innovation in legal education—here: https://www.law.com/briefings/ahead-of-the-curve/