Office of the Vice President for Global Communications

Friday, November 11, 2011

U-M physician testifies at Senate hearing on health care costs

Dr. A. Mark Fendrick (right), professor of internal medicine and health management and policy, talks with Sen. Sheldon Whitehouse, D-R.I., before testifying Thursday at a U.S. Senate committee hearing on how best to reduce costs and increase the quality of health care delivery. Fendrick told the Senate Health, Education, Labor and Pensions Committee that co-payments for health care services should be based on the relative value of the service, rather than a flat-rate reimbursement system. He said this "Value-Based Insurance Design" (VBID) helps cut costs for services that have the highest value to the patient, thus encouraging care for those who most need it and thereby saving the cost of more expensive medical interventions later. Fendrick, who helped create the VBID concept and is co-director of U-M's Center for Value-Based Insurance Design, also urged the committee to allow flexibility for expanding VBID to public health care programs.  (Photo by Mike Waring, Washington Office)