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We hope you enjoy this month's newsletter.  For additional information on the stories included below, please feel free to contact us at (734) 615-9635 or

August newsletter highlights:

aManaged Care: Contrarians discuss innovative solutions to health system problems

V-BID Center director, Dr. A. Mark Fendrick is one of six "contrarians" featured in August's Managed Care magazine. Fendrick discusses how V-BID principles change the discussion from how much to how well we spend our health care dollars across traditional plan designs as well as the rapidly expanding high-deductible health plan market.

Fierce  Healthcare summarizes the Bipartisan Policy Center's new white paper offering legislative and regulatory recommendations to shift from a volume-based to value-driven health care system.  The report recommends legislation to create a two-track payment system that includes a modified fee-for service system with a value-based incentive structure for consumer/provider participation.
AHCJ: How V-BID removes financial barriers to carec

Shifting the discussion from how much to how well the United States spends on health care,
V-BID Center director,  Dr. A. Mark Fendrick, discussed ongoing enrollment in HSA-eligible HDHPs and recent bipartisan efforts to address Medicare spending by proposing a V-BID demonstration project for Medicare Advantage beneficiaries with specific chronic conditions.   
NBGH: Large employers respond to rising benefit costsd

According to findings from a June 2014 NBGH survey of 136 of the nation's largest corporations, employers' health care benefits costs will increase by an average of 6.5% in 2015.  In response, employers plan to increase cost-sharing, expand CDHP implementation, wellness programs, and Centers of Excellence usage.  Specialty medications and weight management strategies will also be examined. V-BID's action brief on specialty medications  and white paper on HDHPs offers clinically nuanced solutions to address costs and care in these areas.   

As an alternative to multi-tiered prescription drug formularies, the Robert Wood Johnson foundation offers a new issue brief recommending that payers team up with state and federal regulators to combat the soaring prices of specialty tier drugs. Using V-BID to improve consumer access to specialty medications is a nuanced approach to address high drug costs.  
WAPO: States spend 31 billion dollars to insure employeesf

State employee health plans spent nearly 31 billion insuring their employees last year, according to a Pew Charitable Trust study. Factors such as plan richness, age, gender, health status, and regional differences in pricing and physician practices contributed to variation in plan cost. 
V-BID's action brief on state employee health plans
offers a framework to align benefit costs and high value services.   
MedCity: Predictive modeling may better address medication non-adherenceg

Managed care companies hope to address nearly 290 billion in annual, avoidable healthcare spending by shifting to predictive modeling analytics instead of more traditional approaches to target patients at risk for medication non-adherence. Relatedly, the Academy of Managed Care Pharmacy has recently developed research priorities designed to improve targets for adherence interventions to improve health outcomes for patients with chronic disease.   
Mind the Gap: Physician-patient communication and medication adherenceh

The first white paper in a Master Series from Mind the Gap Academy Publishing explores physician/patient communication skills and medication adherence. Published evidence and best-practices of high-performing providers are reviewed to determine what distinguishes successful patient medication adherence measures from others. 
EBRI: Out-of-pocket costs still large factor of consumer satisfactioni

Latest findings from the 2013 EBRI-led Consumer Engagement in Health Care Survey indicate that out-of-pocket costs are still a major factor of consumer satisfaction rates. Forty four percent of traditional plan participants were extremely or very satisfied with out-of-pocket costs, while 20 percent of high-deductible health plan (HDHP) enrollees and 31 percent of consumer-driven health plans participants were extremely or very satisfied. 
Modern Healthcare: Doctors respond to consumer cost sensitivityj

As patients bear more financial responsibility for their medical bills, doctors must answer for both the necessity and cost of recommended treatment. V-BID Center director recommends that health plans reduce or eliminate financial barriers to care that is verified to improve patients' health and raise financial barriers to care that lack evidence-based value.

According to an August Health Affairs article, medication affordability gains created by Medicare part D are eroding, resulting in cost-related medication non-adherence for elderly beneficiaries with multiple chronic conditions.  Recently, V-BID was included in proposed legislation as a potential demonstration project for Medicare Advantage beneficiaries to alleviate the burden of drug treatment costs for those with chronic conditions. 

Testifying before the United States Senate Committee on Finance, The Alliance president and CEO Cheryl DeMars cited employers' use of V-BID, worksite clinics, and wellness practices, among other innovations, as tools for more effective management of employees' chronic conditions. 
The University of Michigan Center for Value-Based Insurance Design (V-BID) leads in research, development and advocacy for innovative health benefit designs.

For more information about V-BID, please visit our website and sign up to receive our newsletter.


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