Doctors, insurers and consumers are "ready and willing" to adoptvalue-based insurance designs, which use information and financialincentives to guide consumers' choices, a recent survey found. TheTriZetto Group surveyed 1,761 insurers, brokers, employers,clinicians and consumers to determine "constituents' perceivedvalue and challenges to participating in components of [integratedhealth management]."

While respondents in all categories indicated they thoughtvalue-based benefits would lower health costs they have differentmotives for endorsing such schemes. Employers, brokers and payerssee value-based benefits as a competitive advantage. Doctors' aimsin supporting the plans are to improve the overall health of theirpatients while directing them to appropriate care.

Eighty-three percent of doctors believe value-based benefitswould have a moderate to high impact on consumers, leading them toselect effective, less-expensive care alternatives. Furthermore, 75percent of insurers say it would help win more business and 74percent say it would reduce overall health costs.

Other respondents' replies seem to support this view.Eighty-eight percent of employers said they would take theirbusiness to an insurance company that offered value-based benefits,and 78 percent of consumers said value-based benefits would have amoderate to high impact on their choice of insurer.

Constituents across all categories agreed that direct financialincentives were the best way to motivate behavior changes. Half ofbrokers said premium reductions were the best incentives that couldbe offered, but other groups agreed cash would be most effective.Forty percent of consumers and 42 percent of employers said cashwould be the best motivator. Payers were split between cash (34percent) and reductions in copays or coinsurance (34 percent).

Payers, brokers and employers identified the top challenges toselling or offering value-based benefit plans. Over two-thirds ofpayers said lack of proven ROI was a challenge. Sixty-five percentwere concerned about skepticism from employers and consumers, andrightly so. Sixty-two percent of employers say their workers areskeptical of the plans and afraid they'll end up "paying more andreceiving less," while 61 percent of employers say, ultimately, theprice will be too high.

Brokers aren't sure about the tradeoff between price andunproven benefits; 56 percent of brokers said this would be achallenge in adopting value-based benefit plans. Half say they areworried about employers who are afraid of the administrative burdenthat might accompany the plans.