In the quest to harness health plan value, over the past few years a number of companies have started to experiment with value-based insurance design (VBID). Although the popularity of the concept had been growing in private industry, its inclusion in the Patient Protection and Affordable Care Act thrust VBID into the limelight. Which employers should contemplate adding a VBID element to their health plan, and what should they make of the recent VBID regulatory action? This article answers these questions and informs health benefits managers on how to leverage the use of a VBID to extract more value out of their health plan.
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Neumann, P.J. , Auerbach, H.R., Cohen, J.T., & Greenberg , D. (2010). Low-value services in value-based insurance design. American Journal of Managed Care, 16, 280-286.
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See Neumann et al. (2010), p. 283.
10.
See Chernew et al. (2007), p. 197.
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Hone, F. ( 2008). Why healthcare matters: How business leaders can drive transformational change. Amherst, MA: HRD Press.
12.
See Hone (2008).
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Gibson, T.B. , Mahoney, J., Ranghell, K., Cherney, B.J., & McElwee , N. (2011). Value-based insurance plus disease management increased medication use and produced savings. Health Affairs, 30, 100-108.
14.
See Fendrick et al. (2001 ), p. 866.
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Brennan, T. , & Reisman, L. (2007). Value-based insurance design and the next generation of consumer-driven health care. Health Affairs, 26, 204-207.
16.
Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148 (2009).
17.
See Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111-148 § 2713 (2009).
18.
29 C.F.R. pt. 2590.
19.
See 29 C.F.R. pt. 2590.
20.
Request for Information Regarding Value-Based Insurance Design in Connection with Preventive Care Benefits, Final Rule, 75 Fed. Reg. 81544-81547 (Dec. 28, 2010). Print.
21.
U.S. Department of Labor. ( 2007). FAQs about the HIPAA nondiscrimination requirements. Retrieved from http://www.dol.gov/ebsa/faqs/faq_hipaa_ND.html
22.
New State Ice Co v. Liebmann, 285 U.S. 262, 311 (1932) (Brandeis, L., dissenting).
