Video

Dr Mark Fendrick on VBID's Exciting Implications for the Future

Some exciting developments in value-based insurance design (VBID) have been the introduction of clinically nuanced cost sharing in Medicare Advantage programs, as well as the alignment of demand-side and supply-side payment reform initiatives, according to A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design at the University of Michigan.

Some exciting developments in value-based insurance design (VBID) have been the introduction of clinically nuanced cost sharing in Medicare Advantage programs, as well as the alignment of demand-side and supply-side payment reform initiatives, according to A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design at the University of Michigan.

Transcript (slightly modified)

What will the value-based insurance landscape look like in 2020?

There’s lots of momentum for value-based insurance design, or VBID, coming from both public and private payers. In the public space, we’re very excited about the launch of the value-based insurance design Medicare Advantage demonstration project, launching in January 1, 2017, in 9 health plans in 3 states, looking at common chronic conditions.

To see clinically nuanced cost sharing in the Medicare program is extraordinarily exciting for us, given that it was a very long and tenuous adjuvacy discussion, and now that we’ve seen a big uptake from both CMS and health plans to bring about lower out-of-pocket spending to Medicare beneficiaries, to get them the visits, the diagnostic tests, the drugs, and the procedures they need to manage their chronic diseases, is going to be a great step forward.

And to see this VBID demand-side initiative tied to the very exciting supply-side payment reform initiatives that are taking place across the country, should finally allow us to see alignment of quality-based incentives for both providers and patients.

Related Videos
Rachel Dalthorp, MD
dr mohamad mohty
Kathryn Lindley, MD, FACC
dr jennifer vidrine
dr ryan jacobs
dr brian koffman
Chesahna Kindred, MD, MBA, FAAD, board-certified dermatologist, Kindred Hair & Skin Cente
John Hood, PhD
mily Touloukian, DO, medical oncologist, practice president, and managing partner at Coastal Cancer Center
Related Content
CH LogoCenter for Biosimilars Logo