Skip to main content

Evaluation of Net Cost Guarantee Arrangement calculations: 2021 Review

ByAlex Cires, Joanna Amend, Matthew Hayes, and Sarah Hughes
24 February 2022

Milliman evaluated the process and calculation of Abarca Health's 2021 Net Cost Guarantee Arrangement with a health plan. The objective of the Arrangement is to guarantee that the Plan’s per script drug costs will neither exceed nor fall below a set dollar amount annually, with the guaranteed amount increasing every additional year for three years per the mutually established contract. 

This report was commissioned by Abarca Health.


About the Author(s)

Alex Cires

Joanna Amend

Sarah Hughes

We’re here to help