V-BID Center

Since its inception in 2005, the University of Michigan Center for Value-Based Insurance Design (V-BID) has led efforts to promote the development, implementation, and evaluation of innovative health benefit designs balancing cost and quality. A multidisciplinary team of faculty, including A. Mark Fendrick, MD and Michael E. Chernew, PhD, who first published and named the VBID concept, have guided this approach from early principles to widespread adoption in the private and public sectors. The Center has played a key role in the inclusion of VBID in national healthcare reform legislation, as well as in numerous state initiatives. The basic VBID premise is to align patients’ out-of-pocket costs, such as copayments, with the value obtained from health services and providers.


When Connecticut was facing a projected budget gap of $3.8 billion, the governor's office and a coalition of unions considered how to make changes to the state health plan in order to mitigate the shortfall.
7 months ago
As health reform discussions progress, influential stakeholders have urged policy makers to consider increasing the flexibility of health savings account–eligible high-deductible health plans.
7 months ago
The University of Michigan Center for Value-Based Insurance Design (V-BID) celebrated significant initiative milestones in 2016.
9 months ago
There has been increased bipartisan support around the expanded role of value-based insurance design.
11 months ago
Clinical nuance is one of the core tenets of value-based insurance design, which is one possible solution to alleviate the financial burden Americans face as they are asked to pay a greater percentage of their healthcare expenditures.
12 months ago
In current Medicare benefit designs, out-of-pocket costs do not reflect the expected clinical benefit or value of care. Research indicates that increasing patient cost sharing not only reduces the use of non-essential care, but also reduces the utilization of essential care.
1 year ago
The use of low-value care and the associated cost is a significant concern in the US healthcare system. However, solutions to measure, identify, and eliminate low-value care are challenging and complex.
1 year ago
High-deductible health plans paired with a tax-free health savings account represent a growing percentage of plans across the health insurance landscape.
1 year ago
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