There is a trend in today’s industry of “paying for value.” A focus on value and also long-term benefits would result in better coverage policies and better outcomes for society. For example, the Hepatitis C drug can eliminate the virus with up to 99% effectiveness in some genotypes. Cured patients are unable to transmit the disease, which means that for each patient cured by the drug, several more will be saved from contracting the disease in the first place.
A value- driven healthcare system would aim to solve the problem by allowing states to borrow money from the federal government to pay for these treatments, since Hepatitis C is easily transferred. The government would recognize the value of the treatment, rather than the price of the drug. Consequently, the value-based system that emphasizes long-term benefits would keep people out of the hospitals, lowering costs.
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