The Remington Report

Hospitalizations among corporate employees decreased when the workers were financially incentivized to take medications for diabetes, hypertension, and other chronic conditions.

The study published by Health Affairs provides new evidence that so-called value-based insurance design (VBID) programs may produce break-even results – and could even help employers save money on health benefits.

VBID programs reduce patient copayments for certain health services that provide valuable clinical benefits in relation to costs. The VBID program highlighted in the Health Affairs study reduced copayments by at least 50 percent on prescription medications used to treat diabetes and other serious, chronic conditions. For example, copayments on specified generic drugs were reduced from $5 to $0, and copayments on preferred-brand drugs fell from $25 to $12.50.

Spending on medications increased. The percentage of eligible patients taking their medications increased by 3 percent, from about 70 to 73 percent. However, spending on nonmedical services, such as hospitalizations and emergency department visits, decreased.