Evidence That Value-Based Insurance Can Be Effective
Affiliations
- Michael E. Chernew ( [email protected] ) is a professor in the Department of Health Care Policy at Harvard Medical School in Boston, Massachusetts.
- Iver A. Juster is senior vice president for Informatics at ActiveHealth Management in New York City.
- Mayur Shah was formerly employed at ActiveHealth Management.
- Arnold Wegh is senior informatics analyst at ActiveHealth Management.
- Stephen Rosenberg is senior vice president for Outcomes Research at ActiveHealth Management.
- Allison B. Rosen is an assistant professor in the Division of General Medicine at the University of Michigan in Ann Arbor.
- Michael C. Sokol is corporate medical director for Merck and Company in Whitehouse Station, New Jersey.
- Kristina Yu-Isenberg is an associate director in Regional Outcomes Research at Ortho-McNeil Janssen Scientific Affairs in Titusville, New Jersey.
- A. Mark Fendrick is a professor in the Division of General Medicine at the University of Michigan.
Abstract
Value-based insurance design reduces patient copayments to encourage the use of health care services of high clinical value. As employers face constant pressure to control health care costs, this type of coverage has received much attention as a cost-savings device. This paper’s examination of one value-based insurance design program found that the program led to reduced use of nondrug health care services, offsetting the costs associated with additional use of drugs encouraged by the program. The findings suggest that value-based insurance design programs do not increase total systemwide medical spending.
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