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Health Information Technology and Healthcare Information System

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Related Experiment Video

Updated: Jun 16, 2026

Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care

Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care

Published on: February 16, 2011

Value-based insurance design: embracing value over cost alone.

A Mark Fendrick¹, Michael E Chernew, Gary W Levi

¹Departments of Internal Medicine and Health Management & Policy, Center for Value-Based Insurance Design, University of Michigan, 300 North Ingalls Bldg, Rm 7E06, Ann Arbor, MI 48109-0429, USA. amfen@umich.edu

The American Journal of Managed Care

|January 22, 2010

Summary

Value-based insurance design (VBID) offers a solution to healthcare challenges by focusing on value, not just cost. VBID aligns incentives to improve health outcomes and support cost containment efforts.

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Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

Area of Science:

Health Services Research
Health Economics
Healthcare Policy

Background:

The US healthcare system faces significant challenges in quality, safety, access, and affordability.
Increased patient cost-sharing is often proposed to control unsustainable cost increases.
Reduced consumption of essential services due to cost-sharing can lead to worse health and higher long-term costs.

Purpose of the Study:

To evaluate Value-Based Insurance Design (VBID) as a strategy to address shortcomings of traditional cost-sharing models.
To explore how VBID can align stakeholder incentives to improve healthcare value.
To assess the potential of VBID in complementing existing quality improvement and cost-containment initiatives.

Main Methods:

Review of peer-reviewed and empirical evidence on VBID implementation and outcomes.
Analysis of how VBID focuses on value by aligning financial and non-financial incentives.
Comparison of VBID with other healthcare initiatives like consumer-directed health plans and pay-for-performance.

Main Results:

Evidence indicates VBID is implementable and effectively drives desired behavioral changes.
VBID focuses on value, integrating cost and quality considerations.
VBID complements other initiatives aimed at improving healthcare quality and reducing costs.

Conclusions:

VBID shows promise as a strategy to improve population health and support cost containment.
While not a panacea, VBID offers a valuable approach to producing better health outcomes at any price point.
Widespread adoption of VBID could lead to a healthier population and more sustainable healthcare costs.