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"Over the long term, the Medicare program needs to move toward a benefit design that gives individuals incentives to use higher value care and discourage using lower value care."
-Glenn Hackbarth, MedPAC chairmen in testimony before the Subcommittee on Health, Committee on Energy and Commerce, U.S. House of Representatives,
April 11, 2013
V-BID Newsletter
April 2013

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April's newsletter highlights:
Please follow us on twitter to track and share news on benefit design, payment reform, and healthcare transformation.
UnitedUnitedHealthcare diabetes management improves health, lowers cost growth

A UnitedHealthcare study found that the insurer's Diabetes Health Plan, which helps people manage their condition, improved compliance with recommended services and slowed cost growth for those in the plan. The two-year study followed 620 participants who were offered diabetes-related prescription drugs at no charge as well as no co-payments for doctor visit. 
SharedRWJF: Shared decision-making benefits from V-BID principles
A new brief from the Robert Wood Johnson Foundation's Aligning Forces for Quality initiative discusses synergies between shared decision-making and benefit design.  
MedPACMedPAC Chairman: V-BID would strengthen Medicare

In a U.S. House of Representatives hearing on improving Medicare benefit design, Medicare Payment Advisory Commission Chairman Glenn Hackbarth testified that Medicare fee-for-service benefits should be changed to allow cost-sharing to vary based on the value of medical service provided.   
CDCCDC brief describes how Americans try to lower out-of-pocket drug costs

The Centers for Disease Control and Prevention data brief found that 20 percent of all adults reported asking their physician for a lower cost medication; 13 percent of adults under age 65 had deviated from the prescription to save money. The brief notes that some cost-saving strategies--such as skipping or delaying doses--result in poorer health outcomes. 
Medication adherence in patients with coronary artery disease is associated with improved outcomes and lower costs, according to a meta-analysis published in The American Journal of Medicine. Compared to patients with low adherence, costs for individuals with high adherence were 10-18 percent lower than those who did not take their medications as directed.
Consumer costs rise: Large employers increasingly offering HDHPs

The 18th Annual Towers Watson/National Business Group on Health Employer Survey and research by the Benfield Group indicate that employers with more than 5,000 employees are increasingly offering HDHPs to employees to both rein in costs and promote consumer responsibility.  In 2013, two-thirds of large employers offer the plans and the number is expected to grow as employers search for cost containment strategies. 
ACOsACOs using benefit design to align patient incentives with provider goals
Accountable Care Organizations are beginning to align insurance benefits with health system incentives to deliver better care, according to an article in Modern Healthcare. A handful of organizations are changing benefit designs to encourage patients to engage in healthy behavior and management of their chronic conditions. 
SelfFundSurvey says health insurers expect growth in self-funded plans

Health insurers expect to see continued growth in the number of employers interested in self-funding their coverage, according to an overwhelming majority of industry executives surveyed by Munich Health. The survey found that employers are motivated by a desire to retain control of their benefits and reap the direct rewards of cost containment activities. 
OOPCapsMany plans exempt from out-of-pocket limits for an additional year

According to a report from Kaiser Health News, employers with more than one health policy or benefit administrator are effectively exempt from a provision of the Patient Protection and Affordable Care Act that caps out-of-pocket expenses until 2015.
PartnershipPartnership for Sustainable Health Care: V-BID key to affordability and quality

In their April report, The Robert Wood Johnson Foundation Partnership for Sustainable Health Care singled out V-BID as one of five recommendations to sustain affordability and quality in America's health care system.  

The Center's April brief explores how existing health plans, exempt from PPACA mandates, can incorporate V-BID principles to both improve care quality and control costs.  
The University of Michigan Center for Value-Based Insurance Design (V-BID) leads in research, development and advocacy for innovative health benefit designs.

To contact the V-BID center, email us at
vbidcenter@umich.edu or call 734-615-9635

For examples of V-BID programs from across the country, visit our V-BID registry.

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