(Bloomberg) -- Novartis AG’s plan to link the payment for a new heart-failure treatment to the medicine’s performance is meeting skepticism from the largest manager of drug insurance benefits in the U.S.

Novartis said Wednesday that it plans to offer an outcomes- based plan for its newly approved drug Entresto. Insurers would initially pay a lower price, followed by an additional payment if Entresto succeeds in keeping patients out of the hospital and reducing associated costs. The drug could cost as much as $4,500 a year and would be taken daily for a patient’s lifetime.

The problem is that performance-linked prices are difficult to manage because so many things can affect a patient’s outcome, said Steven Miller, chief medical officer of Express Scripts Holding Co., which helps companies and insurance plans manage their prescription benefits.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.