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Value-Based Insurance Design in Medicare
Applied Health Economics and Health Policy, 10/20/09
Encinosa WE – Drug benefits have responded to the rise in drug costs by increasing patient cost sharing. However, many now realize that increasing cost sharing for high–value preventive–care drugs can be detrimental in terms of reducing patient drug adherence and causing increased inpatient and outpatient costs. Value–based insurance design (VBID) deals with this by decreasing the copayments for high–value preventive–care drugs and raising copayments for drugs with less value.
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