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As healthcare costs continue to rise, payers are turning to innovative strategies, like value-based insurance design (VBID), to improve quality, maximize healthcare dollars for care that is most needed by plan participants, and improve costs in the long run. VBID is intended to save employees, and their self-funded employers, money by directing employees to high-value healthcare.

According to the CDC, "The National Pharmaceutical Council and the University of Michigan Center for Value-Based Insurance Design highlighted four fundamental approaches in their 2009 Value-Based Insurance Design Landscape Digest:

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