Value-based insurance design.
When everyone is required to pay the same out-of-pocket amount for health care services whose benefits depend on patient characteristics, there is enormous potential for both under- and overuse. Unlike most current health plan designs, Value-Based Insurance Design (VBID) explicitly acknowledges and responds to patient heterogeneity. It encourages the use of services when the clinical benefits exceed the cost and likewise discourages the use of services when the benefits do not justify the cost. This paper makes the case for VBID and outlines current VBID initiatives in the private sector as well as barriers to further adoption.
Chernew
Michael E
ME
Harvard University, Boston, Massachusetts, USA. chernew@hcp.med.harvard.edu
Rosen
Allison B
AB
Fendrick
A Mark
AM
D017047:Cost Sharing; D003362:Cost-Benefit Analysis; D035082:Federal Government; D005102:Health Expenditures; D006801:Humans; D007342:Insurance Benefits; D007345:Insurance Claim Review; D007348:Insurance, Health; D009310:National Health Insurance, United States; D009936:Organizational Innovation; D017149:Private Sector; D014481:United States; D019472:Universal Health Insurance