Press Releases

Washington, DC —Congressman Kevin Brady (R-TX), Congresswoman Diane Black (R-TN), Congresswoman Cathy McMorris Rodgers (R-WA), and Congressman Earl Blumenauer (D-WA) released the following joint statement on the recently released plans by the Centers for Medicare and Medicaid Services (CMS) and the Centers for Medicare and Medicaid Innovation (CMMI) to create a five-year value based insurance design (VBID) demonstration across seven states.

“We are encouraged to see that the agency is finally acting on this important issue and commend them for developing their plan based on an idea within H.R. 2570, The Strengthening Medicare Advantage through Innovation and Transparency for Seniors Act of 2015. We will continue to observe the rollout as it moves forward to make sure that it provides Medicare Advantage plans the necessary flexibility to continue to provide essential coverage to millions of Americans."

Background: On June 17, 2015, the House of Representatives passed H.R. 2570, the Strengthening Medicare Advantage through Innovation and Transparency for Seniors Act of 2015, by voice vote. H.R. 2570 establishes a demonstration value based insurance design (VBID) program which allows managed care organizations the ability to offer plans with varying benefit structures that lower cost sharing for high value services.

The VBID method was first conceptualized by Dr. Mark Fendrick and a multidisciplinary team of faculty at the University of Michigan. This approach is based on the notion that, by lowering a consumer’s cost sharing for essential, high-value clinical services, the consumer will then be motivated to continue their medication and take an active role in maintaining their health.

The demonstration program announced yesterday by the Centers for Medicare and Medicaid Services and the Centers for Medicare and Medicaid Innovation will take place in the following states Arizona, Indiana, Iowa, Massachusetts, Oregon, Pennsylvania and Tennessee and run from January 1, 2017, through January 1, 2022.