Do consumers really value items that cost money more than thosethat are free? One leading benefit design strategy hopes that whenit comes to essential health care services, the answer is no.Value-based insurance design (VBID) removes or lowers financial barriers to high-value clinicalservices in hopes that this will make consumers more likely to seekthem.

First theorized by University of Michigan faculty in 2005, theconcept underpins much of what consumers may take for granted intheir covered benefits, such as free annual physicals, but it hasthe potential to do so much more. Thus far, VBID programs havelargely focused on waiving or lowering out-of-pocket costs forpreventive services. The most prominent example is Section 2713 ofthe Affordable Care Act, which requires health plans to coverrecommended primary preventive services (e.g., screening fordepression, flu shots, all FDA-approved contraceptives) with nocost sharing.