Employee benefits are among the primary tools used to attract and retain the best employees so it’s important that the benefit plan design works to balance the goals of the organization and its employees. This requires a thorough analysis and review of the various benefit design approaches.
An important benefit design strategy used by employers focuses on aligning health care costs to the value of the service being provided. These value-based benefit designs can increase health care quality and decrease costs by using financial incentives to promote cost efficient health care services and consumer choices. In this cost-sharing model, patients pay less for health care services and/or medications deemed to be of higher value. Although employers have been using these designs for years, significant work has been conducted by the University of Michigan’s Center for Value-Based Insurance Design (VBID).
Value-based designs that focus on diabetes can be used to help manage and control the impact of diabetes and support employer efforts to drive individuals to select evidenced-based care and/or high quality providers and can:
- Positively impact an organization's culture
- Engage those who are at risk
- Reduce barriers to staying healthy
- Provide positive health outcomes