Cigna has cracked through another major barrier in the war onescalating prescription drug costs. In anew contract struck with drug makers of cholesterol medications, ithas negotiated price discounts if the medications don’t live up totheir billing.

Cigna termed the cholesterol agreements “value-based,” with paymentstied to “incentives … linking financial terms to improved customerhealth.” The new pacts come on the heels of similar contracts withmakers of drugs that treat heart disease, diabetes, multiplesclerosis, and hepatitis C.

In a press release detailing the new deal, Cigna said: “Cigna isthe first health service company to reach value-based agreementsfor its commercial business with both Sanofi/Regeneron and Amgenfor their PCSK9 inhibitor drugs. The contracts are independent ofeach other, but they share the same overall objective. If Cigna'scustomers aren’t able to reduce their LDL-C levels at least as wellas what was experienced in clinical trials, the two pharmaceuticalcompanies will further discount the cost of the drugs. If the drugsmeet or exceed expected LDL-C reduction, the original negotiatedprice remains in place.”