Dr Bruce Sherman: Adding Nuance Can Make Value-Based Insurance Design More Impactful for Employers

January 13, 2020

SAP Partners

Making benefit design more nuanced through the inclusion of employee variables could help increase the impact of value-based insurance design for employers, said Bruce Sherman, MD, chief medical officer of the National Alliance of Healthcare Purchaser Coalitions.

Making benefit design more nuanced through the inclusion of employee variables could help increase the impact of value-based insurance design for employers, said Bruce Sherman, MD, chief medical officer of the National Alliance of Healthcare Purchaser Coalitions.

Transcript

How is value-based insurance design looking among employers? Are they interested in it?

There’s still a lot we don’t know about value-based insurance design, and as much as it seems like a great idea, and I think operationally it is for the right people, I think the impact we’re seeing is not as great as it potentially can be, in that the structure of value-based insurance design as a one-size-fits-all offering for everyone may not be as impactful as perhaps more nuanced, to use a Mark Fendrick word, as nuanced a delivery as perhaps thinking about more advanced, admittedly complicated or potentially complicated, approaches to value-based insurance design. It could be for example incorporating wage or household income as a variable in benefit design or value-based insurance design structure.