The State of Value-Based Insurance Design

The University of Michigan’s Center for Value-Based Insurance Design (V-BID Center) in Ann Arbor was created in 2005 to lead the development of innovative health benefit designs that balance cost and quality. In 2001, the V-BID concept was introduced in a paper written for the American Journal of Managed Care by A. Mark Fendrick, MD, Dean Smith, PhD, Michael Chernew, PhD, and Sonali Shah, MBA, MPH. According to the V-BID Center, the purpose of V-BID is to better “align patients’ out-of-pocket costs, such as copays and premiums, with the value of health services.” Since the origin of the V-BID concept, the V-BID Center has played a key role in getting the V-BID concept included in national healthcare reform policy and in numerous state initiatives.

The 2011 V-BID Center Symposium, held November 16, 2011, was the third V-BID symposium (the previous 2 were in 2007 and 2005). More than 350 professionals from various disciplines gathered to listen to a number of speakers and discuss collaboration among those in various V-BID-related specialties; these included healthcare executives, employers, government officials, plan designers, benefits consultants, and more. Two of the writers of that seminal 2001 paper, Drs Fendrick and Chernew, spoke at the symposium, as did former US Senate Majority Leader Tom Daschle, who delivered the keynote speech.

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