The Precedent of Sovaldi in Subscription Model

The subscription model for medical treatments has a precedent in the rollout of Sovaldi, a drug that cures Hepatitis C. The drug was initially priced at $84,000, which, from an economist's point of view, was a bargain. However, the high number of people with Hepatitis C meant that if each of them had to pay this amount, it would have exceeded the budgets of state Medicaid plans and independent insurers.