Background
The United States spends more in total and per person on healthcare than any other nation in the world and yields arguably mediocre results. It’s generally not argued that the solution is to spend more on healthcare but rather find a way to spend the money that is allocated to healthcare more efficiently. It’s possible to both lower health care expenditures and maintain a high standard for healthcare in the US. Value-Based Insurance Design is one such solution to the problem of rising medical costs. The plan reduces expenditures on wasteful procedures, medications, etc. by reducing financial barriers to “high-value” services and increasing the financial barrier to “low-value services.” V-BID rebalances out-of-pocket costs with the value of the services provided. V-BID is founded on “clinical nuance” which has two fundamental principles: 1) different medical services have different benefits and 2) the value of a medical service is dependent on the patient using it.
Analysis
One major problem with the current healthcare system is the coupling of high-deductible health plans with health savings accounts. Employers are increasing this option to many of their employees to expand coverage options and lower spending. However, this plan …show more content…
It’s necessary to expand pre-deductible coverage and increase flexibility to access “high-value” and high quality services, and V-BID is one such solution. High-value health plans in general have the ability to get patients the care that they need at a lower cost through a decrease in premiums and pre-deductible costs. The greater flexibility offered by HVHPs (specifically V-BID) is another benefit of the system. Individuals have a greater range of choices in selecting their level of health care and will still receive the necessary care even on “lower-end”
The United States spends more in total and per person on healthcare than any other nation in the world and yields arguably mediocre results. It’s generally not argued that the solution is to spend more on healthcare but rather find a way to spend the money that is allocated to healthcare more efficiently. It’s possible to both lower health care expenditures and maintain a high standard for healthcare in the US. Value-Based Insurance Design is one such solution to the problem of rising medical costs. The plan reduces expenditures on wasteful procedures, medications, etc. by reducing financial barriers to “high-value” services and increasing the financial barrier to “low-value services.” V-BID rebalances out-of-pocket costs with the value of the services provided. V-BID is founded on “clinical nuance” which has two fundamental principles: 1) different medical services have different benefits and 2) the value of a medical service is dependent on the patient using it.
Analysis
One major problem with the current healthcare system is the coupling of high-deductible health plans with health savings accounts. Employers are increasing this option to many of their employees to expand coverage options and lower spending. However, this plan …show more content…
It’s necessary to expand pre-deductible coverage and increase flexibility to access “high-value” and high quality services, and V-BID is one such solution. High-value health plans in general have the ability to get patients the care that they need at a lower cost through a decrease in premiums and pre-deductible costs. The greater flexibility offered by HVHPs (specifically V-BID) is another benefit of the system. Individuals have a greater range of choices in selecting their level of health care and will still receive the necessary care even on “lower-end”