Washington, D.C. September 11, 2014 – U.S. Senators John Thune (R-South Dakota) and Debbie Stabenow (D-Michigan) introduced bipartisan legislation The Value-Based Insurance Design (V-BID) for Better Care Act of 2014 (S.2783). A summary of S.2783 is available. A companion bill, H.R. 5183, was introduced by House Representatives Diane Black (R-Tennessee) and Earl Blumenauer (D-Oregon) in July.
Specifically, the bipartisan, bicameral bills direct the Secretary of Health and Human Services to establish a three-year demonstration program allowing participating Medicare Advantage plans to test V-BID principles of reduced copayments and coinsurance for high-performing providers, evidence-based medications, or clinical services related to specific chronic disease care, while explicitly prohibiting plans from increasing copayments or coinsurance to discourage use of services.
The clinical and economic impact of the demonstration project will be evaluated. Expansion of the project depends on whether implementing V-BID plans that provide clinically nuanced incentives for beneficiaries with chronic conditions can improve patient-centered outcomes and control health care cost growth.
For more information on V-BID and Medicare Advantage, please visit our website or contact us at 734-615-9635, vbidcenter@umich.edu.
The University of Michigan Center for Value-Based Insurance Design leads in research, development, and advocacy for innovative health benefit plans.
