In 'groundbreaking' deal, Harvard Pilgrim negotiates contracts to save on two pricey drugs

Harvard Pilgrim Health Care has negotiated new payment contracts with two pharmaceutical companies for expensive drugs, progressing a new kind of payment model that could save millions of dollars down the line.The agreements are what are known as “value-based contracts," a type of agreement in which an insurer only pays a higher price for a drug only when it works. If not, the insurer receives a rebate from the pharmaceutical company, which trickles down into more stable premiums for membe