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New Study Shows Applying Value-Based Insurance Design to High-deductible Health Plans Could Benefit Millions of Americans

The Center for Value-Based Insurance Design (V-BID Center) is pleased to release a
new white paper detailing quantitative study results and qualitative interview findings exploring expanded coverage of preventive services under health savings account (HSA)-eligible high-deductible health plans (HDHPs).    


As outlined by the U.S. Treasury Department, individuals with an HSA-eligible HDHP are required to pay the full cost of most medications and services until deductibles are met. Authorizing legislation passed in 2003 and further guidance include a safe harbor allowing plans to cover primary preventive services typically considered to prevent the onset of disease, before the deductible is satisfied.  However, services or benefits meant to treat "an existing illness, injury or condition," are excluded from first-dollar coverage in HSA-eligible HDHPs.  These secondary preventive services encompass nearly 75% of health care spending, and are frequently used as quality metric for health plans and are often element of clinician pay-for -performance programs.


Funded by the Gary and Mary West Health Policy Center, the study developed and priced hypothetical HDHPs that incorporated "value-based insurance design" (V-BID) principles to better meet the needs of chronically ill patients and those at high risk for developing chronic conditions who utilize an HSA-eligible high deductible health plan. This project was completed in conjunction with Harvard University Medical School and the University of Minnesota.


Read more about the study and learn more about V-BID's bipartisan appeal.    




Kaden Milkovich

University of Michigan Center for Value-Based Insurance Design


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