Value-Based Insurance Design


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.
A study on the impact of a value-based pharmacy benefit on medication adherence found that offering free chronic disease medications maintained patients’ levels of adherence even after switching to a health plan with a deductible.
By 2020, more plans will incorporate value-based insurance design (VBID) principles as a way to lower cost sharing for high-value services and potentially increase cost sharing for low-value services, according to Michael E. Chernew, PhD, the Leonard D. Schaeffer Professor of Health Care Policy and director of the Healthcare Markets and Regulation Lab in the Department of Health Care Policy at Harvard Medical School.
The University of Michigan Center for Value-Based Insurance Design (V-BID) celebrated significant initiative milestones in 2016.
Underinsurance, which occurs when people have insurance but aren’t covered for services they need, is a serious problem in the US, according to A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design at the University of Michigan. He proposed some strategies to alleviate this phenomenon, like smarter deductibles and revised Internal Revenue Service (IRS) rules.


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