State Medicaid Programs Seek Discounts on Pricey Hepatitis C Drugs

By Amy Orciari Herman

Edited by Susan Sadoughi, MD, and André Sofair, MD, MPH

Several state Medicaid programs are offering to make certain hepatitis C treatments the preferred therapies for their beneficiaries in return for large rebates from the drugs' makers, the Wall Street Journal reports. The high cost of the newer HCV treatments, including Harvoni and Viekira Pak, have come under much scrutiny in recent months.

This week, Missouri cut a deal with Viekira Pak's manufacturer to make the treatment the state's preferred option (instead of Sovaldi) "in exchange for undisclosed rebates" — a move that may save the state $4.2 million in the next fiscal year. Up to 25 states could end up making similar arrangements with the company.

The WSJ notes that large private insurers have been striking similar deals with drug makers. One such instance: UnitedHealth Group has agreed to make Harvoni the preferred treatment for its beneficiaries in exchange for, again, "undisclosed" discounts.