The UPMC Health Plan, a subsidiary of Upmc Coverage Products Inc, has started a value-based contract with Boehringer Ingelheim for Jardiance (empagliflozin), an oral type 2 diabetes medicine, effective 1 Janaury 2019, it was reported yesterday.

Jardiance is an oral type two diabetes medicine also indicated to reduce the risk of cardiovascular death in adults with type two diabetes and established cardiovascular disease.

The purpose of the contract is to align the incentives of the manufacturer, Boehringer Ingelheim, with the UPMC Health Plan, and will sign reimbursement of the drug to costs associated with clinical results in the real-world population. In a first-of-its-kind contract, reimbursement for the medication will be linked to total costs of care for all people with diabetes treated. Earlier contracts for Jardiance measured costs only in those with present heart disease. Jardiance is a product in the Boehringer Ingelheim and Eli Lilly and Company diabetes alliance portfolio.