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The University of Michigan Center for Value-Based Insurance Design is the leading advocate for development, implementation and evaluation of innovative health benefit plans. 

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If you would like additional information, please be in touch at vbidcenter@umich.edu or 734-615-9635.
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Federal Departments issue Request for Information on V-BID
On December 28, 2010, the Departments of Labor, Health and Human Services, and Treasury issued a Request for Information on V-BID and preventive care, further signifying its importance in health reform. 


The Center is gathering information to answer these crucial questions, which will help shape Federal Departments' perspective on V-BID implementation.  We are also providing resources for other responders.  Please be in touch if you'd like to discuss this further at vbidcenter@umich.edu or 734-615-9635.


Read the full Request, media, and resources from the Center 

New research finds cost-savings in V-BID programs
Health Affairs
 Three new articles on V-BID are available in the January edition of Health Affairs. 

"Value-Based Insurance Design Plus Disease Management Increased Medication Use and Produced Savings" evaluated a diabetes program involving V-BID and disease management and found that :


"...participation in both value-based insurance design and disease management resulted in sustained improvement over time. Use of diabetes medications increased 6.5 percent over three years. Adherence to diabetes medical guidelines also increased, producing a return on investment of $1.33 saved for every dollar spent during a three-year follow-up period."



In "Medication Adherence Leads to Lower Health Care Use And Costs Despite Increased Drug Spending" findings included:


 "...although improved medication adherence by people with four chronic vascular diseases increased pharmacy costs, it also produced substantial medical savings as a result of reductions in hospitalization and emergency department use."



"A Value-Based Insurance Design Proghram At A Large Company Boosted Medication Adherence For Employees With Chronic Illness" found that reduced cost-sharing for certain prescription drugs increased adherence, provided cost savings to patients, and was mostly cost-neutral employers.  


Read other V-BID research 

Robert Wood Johnson Foundation findings on cost-sharing

RWJF_clearer A December Policy Brief from the Robert Wood Johnson Foundation assesses the impacts of cost-sharing on health spending and outcomes.  Key findings include:




  • Patient cost-sharing is not necessarily effective at slowing health care spending
  • Cost-sharing is not well-targeted on low-value services, and categorizations of low-value should be more specific
  • Increased cost-sharing has an adverse impact on those with low incomes and the chronically ill

 Read the RWJF Policy Brief

Read other V-BID publications

Department of Labor answers FAQ on V-BID in health reform 
The Department of Labor published answers to Frequently Asked Questions about implementing the market reform provisions of the newly passed health reform law.  The first answer on V-BID in preventive care specifies that health plans can steer patients towards preventive care in a higher-value setting (such as a surgery center) with no co-payment, and steer patients away from another setting (such as a hospital) by charging a co-payment. Accommodations should be made to waive the co-payment for individuals that require an alternative setting for medial reasons.  

Role for V-BID in cancer treatment
Research presented by Columbia University researchers at the CTRC-AACR San Antonio Breast Cancer Symposium showed that increasing co-payments for vital breast cancer medications made patients more likely to discontinue use.
Alfred Nugut, MD, said "While high co-payments have been shown to reduce compliance for other drugs, this is the first study to show an impact on such a crucial drug where mortality can be so directly at stake."

Dawn Hershman, MD, said that based on these findings "future public policy efforts should be directed toward reducing financial constraints as a means of increasing the complete use of these life-saving medications."

Read more about how V-BID programs focus on reducing barriers to these types of high-value treatments.

Margaret O'Kane, NCQA, on V-BID as a tool for boosting quality

NCQAMargaret O'Kane, President of the National Committee for Quality Assurance (NCQA), said that "value is essential...  it's no longer just nice to have," during her keynote speech at the NCQA annualy policy conference in December.  O'Kane further notes V-BID as a way that health plans can boost quality.   

Other V-BID News
Reuters, December 7: V-BID success: When Massachusetts lowered barriers to smoking cessation treatment, more smokers quit, heart attacks decreased, and cost savings were achieved.  

LA Times, January 3: "Incentives can encourage good health and align the interests of the patient with those of the insurer and the employer."   

Read more about how V-BID programs help lower barriers to 'high-value' treatments for these and other conditions. 


Contact V-BID Center
734-615-9635 | vbidcenter@umich.edu

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