VBID 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.


Review Finds VBID Programs Improved Adherence at No Added Cost

August 01, 2018

A literature review published in the July issue of Health Affairs concluded that value-based insurance design (VBID) programs that reduced consumer cost-sharing for prescription drugs led to improved medication adherence at no added cost.

Study Identifies Unexpected Contributor to Rising Health Costs: Low-Cost Services

December 27, 2017

One way to improve healthcare quality and efficiency and reduce the use of unnecessary care is to apply the principles of value-based insurance design, which aligns patients’ out-of-pocket costs with the value of services.