Announcement of Medicare Advantage Value-Based Insurance Design Model Test

On September 1, 2015, the federal Centers for Medicare & Medicaid Services (CMS) announced plans to launch a Medicare Advantage value-based insurance model demonstration (VBID) in seven states for the 2017 plan year. The five-year demonstration will take place in Arizona, Indiana, Iowa, Massachusetts, Oregon, Pennsylvania, and Tennessee. The VBID model supports health insurer efforts to structure enrollee cost sharing and design elements to encourage enrollees to favor high-value clinical services, which are services that have the greatest potential to positively affect enrollee health relative to cost. This document is the memo to Medicare Advantage plan sponsors . . .