Nayer, Mahoney: Value-Based Design in Journal of Compensation and Benefits

Building on their consistent theme of value-based benefit designs linked to meaningful behavior change, Cyndy Nayer and Jack Mahoney, M.D. have released  evidence documenting the link from Value-Based Design to behavioral health.  Adherence is the sustainable goal when designers fully comprehend that co-pay reduction alone will not support long-term change.  ”Co-pay reduction is an engagement tool, but we’ve documented evidence for many years that the goal of sustainable adherence to improved health is the systematic application of the levers of prevention and wellness, chronic care management, and care delivery.  The incentives must align in order for sustainable change to occur; barriers must be removed and reimbursement must be aligned in order to remove the friction that causes interruption in management,” say the authors and co-founders of the Center for Health Value Innovation.

As the country approaches the end of a year of promised reform that would deliver more health care, bend the trend on costs, and get more uninsured people into the system, weariness and wariness have taken root. The focus has moved from “bending the trend” to insurance reform, but the plan sponsors—most often employers of many sizes and sectors—have a job to do, and they need health and productive employees to do it.

Value-Based Designs Deliver Dividends—But Overcoming Non-Adherence Is Key
Adherence indicators may well be part of the “holy grail” for beneconomic outcomes. Using a suite of levers, defined as insurance design, incentives and disincentives, the benefits and compensation decision-maker has the power to influence behavior change for desired results. But the arbitrary implementation of iconic models of value-based designs, using these levers to  remove cost and access barriers for certain populations, is not without consequences.  Value-based designs do work, influencing patient and consumer behaviors in  prevention/wellness, chronic care management, and choice of care delivery.

Read more.  Nayer, Mahoney J Comp Ben Behavior Change and VBBD JCBv26#1 copyright

“Reprinted from Journal of Compensation and Benefits. Copyright © 2010 Thomson Reuters/West.

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