20 Years of VBID Policy Achievements and How to Continue Progress

In 2001, A. Mark Fendrick, MD, and Michael E. Chernew, PhD, current co-editors-in-chief of The American Journal of Managed Care^®, brainstormed an idea they were calling benefit-based co-pay that would tie a prescription drug’s cost-sharing to its clinical value to the patient. That concept was eventually renamed value-based insurance design (VBID). Today, VBID concepts are present in the Affordable Care Act (ACA) through covered preventive services, Medicare Advantage has been running a VBID demonstration project, and the next iteration, VBID X, is being developed.

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