State government Medicaid programs provide medical
insurance to poor and disabled people. A news article
described a new prescription drug that costs as much as
“$94,000 for one 12-week treatment regimen” to treat hepatitis C, a liver disease. Several states restricted access to
the new drug under their Medicaid programs to patients
who are most acutely ill (stage 3 or stage 4) with hepatitis C. State Medicaid programs are paid for, in part, out of
state budgets. What trade-offs do state governments face
when new prescription drugs are introduced with much
higher prices than existing drugs? Do you agree with
states providing expensive new drugs only to the patients
who are most ill from a disease? Briefly explain.
Sources: Lisa Schencker, “State Switches Stance on Hepatitis C
Drugs, Expands Access, but Not All Medicaid Patients Qualify,”
chicagotribune.com, September 12, 2016.