Colorado Medicaid Implements Two Pharmacy Value-Based Contracts With Novartis

The Colorado Department of Health Care Policy & Financing (HCPF) launched two Medicaid value-based contracts, effective January 1, 2022, with drug manufacturer Novartis. One contract is with Novartis Gene Therapies for its Zolgensma drug therapy used to treat spinal muscular atrophy (SMA). The other is with Novartis Pharmaceuticals Corporation for its Entresto drug therapy used to treat heart failure. These are HCPF’s first value-based contracts for the Colorado Medicaid pharmacy program.

Both contracts hold Novartis financially accountable for meeting the clinical outcomes demonstrated in clinical trials. However, HCPF has not publicly released the target clinical outcomes.

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