CMS announces that a new health insurance model will be tested to reduce the cost of medical care
A new health insurance model is set to be tested in the United States, according to an announcement made by the Centers for Medicare & Medicaid Service (CMS). The model was designed to improve medical care while also cutting costs and the concept behind the model was designed over the course of 10 years at the University of Michigan. Called the Medicare Advantage Value-Based Insurance Design Model, the program is meant to improve the overall health care system.
Model aims to improve medical services and make care less expensive
The model will be tested in seven states and will provide the federal government with a way to determine how well value-based health insurance could improve care and make medical services less expensive. Testing of the new model will begin on January 1, 2017 and will take place in Arizona, Iowa, Indiana, Massachusetts, Oregon, Pennsylvania, and Tennessee. If the test is successful, the model may be rolled out to other states in the future.
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Value-based health insurance may be a major benefit for consumers
Value-based health insurance is designed with the concept that not all health services offer the same degree of care. The concept is based on research that suggests that higher out-of-pocket costs and co-payments actually discourage consumers from seeking out medical services, including immunizations and medical screenings. As a result, many people often add to the cost of health care because they do not take advantage of preventative services.
Reducing the cost of medical care may also reduce the cost of health insurance coverage
CMS believes that the new health insurance model shows some promise. The program was developed to fill the need for solutions that can be tested to lower the cost of medical care and improve services provided to consumers. In reducing the cost of medical care, insurance coverage may also become less expensive. Insurers have issued concerns regarding the growing cost of medical care for some time, noting that as health care services become more expensive, so do does insurance coverage.