University of Michigan Center for Value-Based Insurance Design

Established at the University of Michigan in 2005, Value-Based Insurance Design (V-BID) is built on the principle of lowering or removing financial barriers to essential, high-value clinical services. V-BID plans align patients’ out-of-pocket costs, such as copayments, with the value of services. These innovative products are designed with the tenets of “clinical nuance” in mind. These tenets recognize that:

1. Medical services differ in the amount of health produced.
2. The clinical benefit derived from a specific service depends on the consumer using it, as well as when, where, and by whom the service is provided.