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Abstract

Risk sharing is an old idea that has taken many forms in the era of managed care. But with the emergence of high-cost biopharmaceuticals, payers and purchasers are keen on a new twist: putting the onus on manufacturers to prove that their products are as good as advertised. Popular in Europe, risk-sharing contracts are gaining traction in the United States.

“Risk sharing is one way to raise a barrier to your competitors,” says Bruce Pyenson, principal and consulting actuary with Milliman Inc.

“Where risk-sharing arrangements are targeted and where you can stand behind the medicine as not just incrementally better but significantly better ... that is a win-win situation,” says Novartis CEO Joe Jimenez.