EmblemHealth has announced the results of its study on the awareness level of value-based payments by employers and consumers. Both groups were unsure of the differences between value-based payment and fee-for service payments. However, when given a definition, they strongly preferred this model to deliver the highest-quality care while also reducing costs.
The survey results and the information gathered from our research show that employers and consumers prefer fee-for service payment models to value-based care when they understand their differences, said Karen Ignagni. CEO of EmblemHealth. All stakeholders will need to work together in order to educate the public about the value-based model of care.
This study is a follow-up of the company’s previous Consumer-focused Value-Based Care Study. It surveyed nearly 250 employer health insurance decision makers and over 750 consumers aged 18 and older across the country, with a tristate region as an oversample. The online survey focused on the following: awareness and understanding of fee-for service payments and value-based health care. What consumers think of when they hear value in healthcare.
The study’s key findings include:
- Both employers and consumers are unaware of the concepts of fee-for service and value-based payments. This provides an opportunity for stakeholders and partners to work together on education.
- Only one third of employers could define “value-based” care. Small group employers understood the term less than large groups and were also more likely to not know if value-based coverage is included in their plans.
- Only 26% were familiar with the term “value-based healthcare”. Four out of ten consumers are unsure if value-based health care is available through their plan.
- Employers and consumers believe that health insurers and health providers are the most responsible in adding value to healthcare.
- When it comes to health care, 42% of employers, and 34% consumers, most often associate the quality of care with its value. Out-of-pocket costs are ranked second (22% and 16%).
- Both groups ranked insurers and providers as the most important in terms of adding value.
- Both audiences are aligned towards value-based payment models compared to fee-for service payments.
- 69% of employers (62% for small groups and 74% for large groups) and 61% consumers prefer the value-based model of care to the fee-for service model.
EmblemHealth published a white paper on 2023 Value-Based Care that contains more detailed findings and recommendations about how employers and consumers could be better informed of the differences between the fee-for service and value-based payment models. “
EmblemHealth also has a blog entitled “Understanding value-based care and its importance to stakeholders in the health care system: The experience of a community-based non-profit health plan”.
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