20 Years of Value-Based Insurance Design: Progress and Future

At the 2025 Value-Based Insurance Design summit, speakers reflected on two decades of advancements in value-based insurance design (VBID), emphasizing its evolution from promoting high-value services to also discouraging low-value ones. Andrew Chasin from Blue Shield of California highlighted the historical significance of VBID, which began with a research paper sent to Congress. VBID 1.0 led to better management of health costs, showing how thoughtful design can lead to better health outcomes.

The panelists, including Adam Beck of AHIP and Silas Martin from Johnson & Johnson, discussed how VBID has fostered collaboration among insurers and health care providers. They noted real-world successes due to VBID principles and emphasized the importance of the preventive care services mandate in the Affordable Care Act, which has received strong support from the insurance industry.

The future of VBID was a focal point of discussion, with calls for better education of patients and providers, alongside a push for personalized VBID strategies. The changes, they mentioned, may not always save money, but they aim to enhance care quality and accessibility, illustrating VBID's potential impact on the health care ecosystem.