Is to signal that a covered prod- uct is valuable. Reducing out-of-pocket costs for effective products also increases their use and improves patient outcomes. Value-based insurance reduces or eliminates out-of-pocket costs for cost- effective products, but designing such a plan is demanding. It requires accurate measurement of health outcomes, accurate measurement of total costs (not just the cost of the product), and payment changes to create the proper incentives for patients and providers. (How to change the payment is not always obvious.) Good data on outcomes are often available for drugs, so changes to drug benefits are more common than other changes. Many insurance plans now incorporate free preventive services (e.g., vaccinations and mammography), but patients and providers are not always aware of these changes.
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