As insurance firms seek to cut costs, the money-back guarantee, a new kind of deal struck between drug companies and insurers, is placing effective treatments and advanced medication at the center of attention, according to Insurance Business.
With new generation medications exceeding $100,000 for a year supply, insurers are often hesitant to pay for them. However, this new guarantee promises insurers a refund or full rebate if the medicine used by the patient does not work as the drug company has promised.
Since patient progress can be monitored through EMRs, wasteful spending for insurers is minimized, while patients gain access to new treatments that would normally not be covered by insurance, according to the report.
These deals are likely a part of the solution to rising drug prices and expenses associated with new medication, as insurers are more confident in choosing the new treatment.
More articles on healthcare finance:
Healthcare revenue cycle market size to exceed $100B by 2024
S&P downgrades rating on Dawson County Hospital District's debt to 'CCC'
Ready for value-based care?