Fendrick, who also is a professor in the Department of Internal Medicine and professor of Health Management and Policy at U-M, created the VBID concept and launched the VBID Center with Michael Chernew, Ph.D., professor in the Department of Health Care Policy at Harvard Medical School.

"The basic premise of value-based insurance design is to remove barriers to encourage the use of high-value screenings, diagnostic tests, medications and procedures," says Fendrick.  "With better alignment of patient and clinician incentives, we can produce more health at any price."

The center's faculty has published widely on the clinical and economic merits of VBID programs, which have been implemented widely by private companies, public organizations, unions, and health plans.

"VBID been endorsed by all key health care stakeholders.  While we recognize that health care costs need to be addressed, we believe that cost containment efforts “ such as increasing premiums or co-payments “ should not produce avoidable reductions in quality of care."  said Fendrick.

"We are proud that the University of Michigan is influencing health care policy in the nation," said Dean Smith, Ph.D., director of the U-M VBID center in the School of Public Health. "We believe our efforts to develop this concept will result in better health outcomes for the entire country."

SOURCE University of Michigan Health System