value-based insurance design (VBID)

Aims to increase health care quality and efficiency by using financial incentives to promote cost efficient health care services and consumer choices. It may also use disincentives, such as high cost sharing, to discourage the use of services with minimal or no proven beneficial results over less costly options.


In various health reform proposals, a certificate or fixed dollar amount that is provided to persons, which is used to pay all or part of the cost of health insurance or services.