• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Workplace lexicon: Value-based insurance design

by on
in Compensation and Benefits,Human Resources

Value-based insurance design: The insurance industry’s lingo for a system of carrots and sticks that rewards patients for undergoing medical procedures with a good track record of success (think flu vaccines and hypertension treatment) and penalizes them for treatment of questionable value (hip-replacement surgery and many kinds of high-tech imaging, for example).

The scheme relies on variable co-pays and deductibles; lower to reward patients, higher to penalize them.

Advocates say value-based insurance design steers patients to the most effective treatments, which helps improve outcomes and reduce the overall cost of care. In 2010, Oregon moved 275,000 state employees and dependents to a value-based plan in which employees pay $500 more per year if they elect less effective treatments. Result: Premiums, which had been rising 7% per year, last year fell by 0.5%.

Opponents say value-based plans prevent patients from getting needed care. Many lower metal-level plans spawned by the Affordable Care Act feature value-based insurance design.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/37582/workplace-lexicon-value-based-insurance-design "

Leave a Comment