October 07, 2021

Mike Adelberg Speaks to AIS Health About How Value-Based Insurance Design Uptake May Be Procedural

In the article “Major Expansions, Rich Benefits Will Drive Competitive AEP” for AIS Health’s RADAR on Medicare Advantage publication, Faegre Drinker Consulting Principal Mike Adelberg discussed the increased participation in the Medicare Advantage (MA) Value-Based Insurance Design (VBID) model.

The publication explained that as the 2022 Annual Election Period (AEP) approaches, the Centers for Medicare & Medicaid Services expects the MA program to continue its upward trajectory. More MA organizations (MAOs) are also expanding their Dual Eligible Special Needs Plan presence and testing benefit innovations through the Part D Senior Savings Model and MA VBID model in 2022, said the CMS.

“With rebate sharing and hospice, the VBID toolbox is more interesting in 2022,” noted Adelberg. Model participants have the flexibility in 2022 to share beneficiary savings more directly with enrollees in the form of cash or monetary rebates.

However, “a big reason for the increased participation may be procedural,” Adelberg suggested. “MAO actuaries are now modeling and putting cost offsets into their bids for new and condition-specific benefits, so performing similar analyses for VBID is not the barrier it once was.”  

The full article is available for AIS Health subscribers.

Full Article

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Michael S. Adelberg

Principal - Healthcare Providers & Plans Practice Lead - Faegre Drinker Consulting

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