2017 Defense Bill Calls for Expanded Role for V-BID in TRICARE Program

House and Senate conferees have agreed to an almost $619 billion defense budget that calls for a demonstration using Value-Based Insurance Design in the TRICARE program.  The National Defense Authorization Act for fiscal year 2017 is tentatively scheduled for a House vote Friday and a Senate vote soon thereafter, senior staffers told the press on December 1st.  Text of the conference report – Page 454:

(1) IN GENERAL — Not later than January 1, 2018, the Secretary of Defense shall carry out a pilot program to demonstrate and assess the feasibility of incorporating value-based health care methodology in the purchased care component of the TRICARE program by reducing copayments or cost shares for targeted populations of covered beneficiaries in the receipt of high-value medications and services and the use of high-value providers under such purchased care component, including by exempting certain services from deductible requirements.

The demonstration includes an evaluation of how reducing or eliminating the cost-sharing for specified high-value medications and services impacts:  (I) adherence to medication regimens; (II) quality measures; (III) health outcomes; and (IV) beneficiary experience.This growing bipartisan support and expanded role of V-BID principles in public and private payers builds on the Medicare Advantage V-BID demonstration project and H.R. 5652 “Access to Better Care Act of 2016,” a bipartisan bill that provides high-deductible health plans the flexibility to provide coverage for services that manage chronic disease prior to meeting the plan deductible.

In February 2016, A. Mark Fendrick, MD, developer of the V-BID concept and Director of the University of Michigan V-BID Center, testified before the United States Senate Committee on Armed Services Subcommittee on Personnel.

Learn more about V-BID in TRICARE program here.