News Update: CMS Announces Medicare Advantage V-BID Model Test

On September 1, 2015, the Centers for Medicare and Medicaid Services (CMS) announced a program to test Value-Based Insurance Design (V-BID) in Medicare Advantage (MA) plans.  The program will examine the utility of structuring patient cost-sharing and other health plan design elements to encourage patients to consume high-value clinical services, thereby improving quality and reducing costs.

The model test is scheduled to begin on January 1, 2017.  CMS will conduct the model test in Arizona, Indiana, Iowa, Massachusetts, Oregon, Pennsylvania, and Tennessee.



“The Medicare Advantage Value-Based Insurance Design Model fills an immediate need for testing ways to improve care and reduce cost in Medicare Advantage Plans and offers the prospect of lower out-of-pocket costs and premiums along with better benefits for enrollees in Medicare Advantage,” said Patrick Conway, MD, MSc, CMS deputy administrator and chief medical officer.

For additional information about the CMMI MA V-BID model program, please read the CMS announcement.  Learn more about V-BID in Medicare Advantage here.

A. Mark Fendrick MD, developer of the V-BID concept and Director of the V-BID Center is available for questions or comments.