Issue Brief: A Primer on Reference Pricing & VBID

Executive Summary

Cost sharing is too often a tool that prevents low-income individuals from being able to access quality and timely health care services. Health care experts, however, are exploring other mechanisms, such as Value-Based Insurance Design (VBID) and its Reference Pricing ways to address shortcomings of cost sharing. VBID, at the moment, is largely used in employer-based health insurance plans. NHeLP Policy Analyst David Machledt explains VBID, explores how it is working in private insurance plans, and how it might find its way into public health insurance plans.

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