Adopt value-based insurance designs

PAN’S POSITION

Public and private insurers should adopt value-based insurance designs to facilitate access to medically necessary and high-value therapies for all patients.

According to the Center for Valued-Based Insurance Design at the University of Michigan, low-value healthcare services contribute to over $345 billion in wasteful health spending each year.  

Under a value-based insurance design approach, treatments that provide high clinical value have low or no patient cost-sharing to increase patient access, ensuring more affordable care for patients.  

This design approach can shift the focus of patients, doctors, and payers away from a ‘one-size-fits-all’ cost-sharing system to one that maximizes value in healthcare.