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Luigi Pistaferri, Consumption Inequality and Family Labor Supply

Evidence That Value-Based Insurance Can Be Effective

Archived Abstract of Former PSC Researcher

Chernew, Michael, I.A. Juster, M. Shah, A. Wegh, S. Rosenberg, Allison Rosen, M.C. Sokol, K. Yu-Isenberg, and A. Mark Fendrick. 2010. "Evidence That Value-Based Insurance Can Be Effective." Health Affairs, 29(3): 530-536.

Value-based insurance design reduces patient copayments to encourage the use of health care services of high clinical value. As employers face constant pressure to control health care costs, this type of coverage has received much attention as a cost-savings device. This paper's examination of one value-based insurance design program found that the program led to reduced use of nondrug health care services, offsetting the costs associated with additional use of drugs encouraged by the program. The findings suggest that value-based insurance design programs do not increase total systemwide medical spending.

DOI:10.1377/hlthaff.2009.0119 (Full Text)

Country of focus: United States of America.

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