VBID's exciting implications for the future

Some exciting developments in value-based insurance design (VBID) have been the introduction of clinically nuanced cost sharing in Medicare Advantage programs, as well as the alignment of demand-side and supply-side payment reform initiatives, according to IHPI member A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design at the UM.

"There’s lots of momentum for value-based insurance design, or VBID, coming from both public and private payers. In the public space, we’re very excited about the launch of the value-based insurance design Medicare Advantage demonstration project, launching in January 1, 2017, in 9 health plans in 3 states, looking at common chronic conditions" says Fendrick.

"To see clinically nuanced cost sharing in the Medicare program is extraordinarily exciting for us, given that it was a very long and tenuous adjuvacy discussion, and now that we’ve seen a big uptake from both CMS and health plans to bring about lower out-of-pocket spending to Medicare beneficiaries, to get them the visits, the diagnostic tests, the drugs, and the procedures they need to manage their chronic diseases, is going to be a great step forward."