EBRI Fast Facts

Using Health Plan Design to Incentivize Medication Adherence Among Diabetics: Impact on Employer and Patient Spending

Sep 28, 2023 4  pages


Value-based insurance design (V-BID) is a health plan feature that encourages optimal use of high-valued health care by lowering member out-of-pocket costs through reductions in deductibles, coinsurance, or copays. Given that chronic disease progression, exacerbations, and adverse events are routinely controlled using medication, the application of V-BID in prescription drug coverage should make clinical and economic sense.  Analyzing a random sample of 2.4 million individuals continuously enrolled during 2019, this week’s Fast Fact takes a look at whether decreasing out-of-pocket costs will help patients to increase their medication adherence — which will prompt medical cost savings.