Harvard Pilgrim Health Care, the second largest health insurer in New England, has reached deals with pharmaceutical-giants Novartis and Eli Lilly to pay for certain drugs based on patient outcomes, reports STAT.
Under a contract with Novartis, Harvard Pilgrim will receive a discount from the drug company if its Ernesto treatment for congestive heart failure does not result in a specified drop in patient hospitalizations, according to the article.
Under the other contract, Harvard Pilgrim has agreed to accept a lower rebate from Eli Lilly if its diabetes drug lowers patients' hemoglobin levels better than drug competitors.
Novartis has already struck outcomes-based contracts for Ernesto with Cigna and Aetna.