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Newsletter Article


Outcomes-Based Pharmaceutical Contracts: An Answer to High U.S. Drug Spending?

high drug spending

High prices for brand-name prescription drugs are putting pressure on payers and patients alike. In response, some pharmaceutical manufacturers and private payers have shown an interest in outcomes-based contracts, which tie rebates and discounts for expensive drugs to their effectiveness in treating targeted patients. Health policy expert Elizabeth Seeley and pharmaceutical researcher and regulatory expert Aaron S. Kesselheim, M.D., take a close look at experiences with outcomes-based contracting to assess its benefits and limitations.

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