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NIHCM News

New Expert Voices - Value Based Insurance Design

June 10th 2009

NIHCM Foundation has released a new edition of Expert Voices, "Value Based Insurance Design: Maintaining a Focus on Health in an Era of Cost Containment", by A. Mark Fendrick, MD, University of Michigan Medical Center and Michael Chernew, PhD, Harvard Medical SchoolPatient cost sharing serves to moderate demand for health care services and is growing in importance as a way to control health care spending.  Indiscriminate cost sharing, however, can cause patients to reduce use of services that are of high value in maintaining their health.  In this essay, Fendrick and Chernew describe a more tailored approach to patient cost sharing – Value Based Insurance Design – that varies cost sharing according to the value of the service, encouraging patients to use high value services and avoid services of low value.  (Content of this essay was published simultaneously in the American Journal of Managed Care.)

Click here to download pdf.