The Facts
Costs from poor medication adherence are estimated to exceed $100 billion annually.
State Policy and State Exchanges
Key choices will affect the benefit design in the Exchanges, and therefore the utilization of value-based plans. The V-BID Center can assist states in learning more about V-BID and the contributions it can make to higher quality, more cost-effective health care in the exchanges, including specific implementation strategies. Whether a state has an active purchaser or clearinghouse type exchange, these principles are designed to ensure that V-BID can be used by plans sold within the exchange, and how policymakers may promote value-based plans if they choose to create quality thresholds or rankings.
As details of the exchange structures and the essential benefits package emerge, the V-BID Center will publish more information to guide implementation of value-based policies under different exchange frameworks.
Useful links for exchange policymakers:
> Read the Center’s principles for using V-BID in state exchanges
> Read the Maryland Citizens Heath Initiative whitepaper on V-BID in state health exchanges
> State Refor(u)m
> National Council of State Legislatures
Essential Benefits
On October, 2011, the Institute of Medicine released its long-awaited report on Essential Health Benefits, and we are pleased to share some highlights of the report that underline the need for and utility of value-based design. The recommendations and frameworks in the report will serve as the main source of guidance for the Department of Health and Human Services as it develops an essential health benefits package as required under the Patient Protection and Affordable Care Act.
> Read about V-BID in the Essential Health Benefits report
> Read the full IOM report
State Employee Benefit Reform
In Connecticut in 2011, Governor Malloy and unions representing state employees negotiated a labor agreement that includes targeted health savings driven by value-based insurance design. The V-BID Center believes that Connecticut’s use of V-BID to lower employee health benefit costs while improving health is a significant model that can be shared as an example to other states. We have followed development of this model and will provide further details on our website as they become available.
> Read more about Connecticut’s state employee benefit reform
In 2011, the State of Connecticut ratified an agreement with a coalition of unions, the State Employees Bargaining Agent Coalition (SEBAC), targeting health savings using value-based insurance design. By late 2011, over 95 percent of eligible employees and their dependents had switched from their existing plans into V-BID plans. Attorney Robert Krzys, chief spokesperson for SEBAC, shared his experiences implementing a V-BID program with the V-BID Center.
