Posted by Michael Wonder on 22 Feb 2017
Harvard Pilgrim expands use of novel drug purchasing deals
22 February 2017 - Leveraging its buying power as one of the state’s largest health insurers, Harvard Pilgrim Health Care has struck two more deals to pay for expensive drugs based on how effectively they treat patients, an emerging strategy aimed at reining in medical spending.
Harvard Pilgrim, which has 1.3 million members, said the agreements cover the rheumatoid arthritis medicine Enbrel, made by Amgen Inc., and Eli Lilly & Co.’s osteoporosis medicine Forteo.
Known as pay-for-performance or pay-for-value contracts, the deals seek to curb spending on drugs while giving patients access to costly treatments. Enbrel costs nearly $45,000 per patient per year in the United States, according to the research firm EvaluatePharma, while Forteo costs about $29,000 a year.
