Yet, because they are so excited about the potential of VBID
, advisors are passionately introducing VBID
to prospects but leaving other solutions to collect dust.
The City of Asheville, North Carolina, runs a highly successful disease management program that conforms to VBID
lowered the insulin individual copay amount from its preferred formulary cost of USD 30 per 30-day supply to USD 15 and allowed for 100-day supply.
Affordability becomes an issue for costlier medications that often are not part of VBID
programs, such as those that treat hepatitis C, multiple sclerosis, and rheumatoid arthritis.
High out-of-pocket costs are often cited as a culprit, and VBID
might make a difference by linking patient co-payments to value.
proposes is this: By customizing benefits so that the most valuable services for any one condition cost less to the employee than services of lesser value, companies can make healthcare dollars go farther.
Benefits advisors who promote a VBID
approach can encourage the use of services when the clinical benefits exceed the costs.
When applied to employer-provided health plans, a value-based approach is known specifically as value-based insurance design (VBID
For example, Fendrick and Chernew (2007) argue for a system of value-based insurance design (VBID
), in which cost-sharing is designed to encourage use of high-value services and discourage use of less valuable services.
Chernew reports that he is a partner in VBID
Health, LLC, which has a contract with Milliman to develop and market a tool to help insurers and employers quantify spending on low-value services.