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The Value Driven Health Care Initiative

As a follow-up to Bush Administration’s August 2006 Executive Order committing the Federal government’s health care programs to move forward in providing consumers with easy-to-use information about the quality and price of their health care. The goal is to standardize and expand health care information transparency at the federal, state and local level.

On November 17, Department of Health and Human Services (DHHS) Secretary Michael Leavitt conducted a meeting in Washington DC to take this effort to the next step by challenging the nation’s private sector employers to help provide more “transparent” health care information to consumers by supporting four “cornerstone” principles for health care purchasing:

Using interoperable health information technology (through which, data can be communicated and exchanged among different information systems, software applications and networks);
Measuring and reporting health care quality;
Collecting and reporting information on health care prices; and
Implementing programs such as pay-for-performance reimbursement systems or high performance networks which encourage consumers to use high-quality, cost effective services.

In his remarks, Secretary Leavitt said that his initial focus has been on the nation's largest 200 companies. Several large employers including IBM, Carlson Companies, and Lowe’s have made public pledges to sign a letter of support for the President’s late August Executive Order. By spring 2007, when employers enter into contracts with health plans for the following year, the Secretary said his goal is for at least 60 percent of the marketplace to be incorporating the four cornerstone principles as they purchase health services.

All purchasers, including plan sponsors and service providers, are encouraged to review the materials on the Secretary’s initiative which are now available at DHHS’ health care transparency Web site. To participate in this unprecedented effort to drive health care quality and efficiency, supporters are asked to sign and return to DHHS the short “statement of support” which pledges the organization’s commitment to begin implementing measures to achieve each of the four value-driven cornerstone practices. Purchasers and coaltions can sign up directly and conveniently on the DHHS website.

Participation is voluntary and participants in the program are encouraged to take steps that they determine appropriate in each of the four areas. A Frequently Asked Questions document, also available on the Department’s website, addresses how employers might choose to proceed as participants in the HHS initiative. The Department has also provided a sample request for information (RFI) questions that purchasers can use to gauge the status and progress of their health plans in aligning with the four cornerstones. NBCH’s 2007 eValue8 RFI contains the entire set of cornerstone questions and will be used to provide a baseline portrayal of health plans nationally in the spring of 2007.

NBCH has urged our membership to sign the DHHS “letter of support” and to encourage their employers members to do the same. To make participation easier for coalitions and their members, please refer to the resources outlined below, including the purchaser letter of support. Also, we encourage you to host this information and the DHHS web link from your coalition’s website.

NBCH and Coalitions play a major role in the Value Driven Health Care Initiative
Here’s how NBCH and our coalition members are participating in the Value Driven Health Care Initiative:

eValue8 and the Value Driven Health Care Initiative: As a benefit for employers signing the statement of support, DHHS offers employers a resource packet that includes ways that employers can take action on the 4 cornerstones. Among other items included in the packet, the Secretary offers RFI questions that employers should ask their health plans during contract negotiations. After the Secretary’s November meeting, NBCH announced that the recommended RFI questions in the resource packet have been integrated into NBCH’s 2007 eValue8™ Common RFI. This will permit NBCH to collect a baseline of health plan responses to these RFI questions by the Spring 2007. Nearly 300 plans respond to the eValue8 RFI annually and it is actively being used by almost 20 coalitions and their employer members in assessing plan performance. To learn more about eValue8, please click here.
The Partnership for Value Driven Health Care: NBCH is a member of what’s come to be known as “The Partnership,” the original host committee for the Secretary’s Value Driven Health Care launch event in November 2006. The partnership is developing a website, and we’ll link to it, here, when it premieres. The Partnership has developed the Value-Driven Health Care Purchaser's Guide.
Coalitions Rally Employer Support of the Value Driven Health Care Initiative: To see which coalitions have encourged employers to sign the Secretary’s Statement of Support, and see what else they’re doing to be a part of advancing the value driven health care, please click here.

Value-Driven Health Care Initiative
NBCH strongly supports the U.S. Department of Health and Human Services' (HHS) "Value-Driven Health Care Initiative (VDHCI)." NBCH has been working closely with HHS to develop tools and resources (Value-Driven Health Care Initiative Implementation Committee Purchaser Guide) that help purchasers understand the importance of value-driven health care and the extremely valuable role that they can play in assuring that health plans and providers are giving the consumers the best care in the most efficient manner possible.

NBCH firmly believes that health care reform through value-based purchasing is the most thoughtful, prospective way to control costs, expand accessibility and improve quality and care efficiency.
NBCH believes that government, business, provider and consumer partnership and shared responsibility is essential to this effort.
NBCH is committed to ensure that the 2008 presidential candidates understand the vital leadership role that the government must play in strengthening and expanding the prevalence of the VDHCI, and to ensure the transition of value-driven health care to the new administration.

For assistance in applying to become a Chartered Value Exchange, please click here.

NBCH is actively working to bring about reform too. Starting in 2007, NBCH included in its eValue8 standardized health plan quality improvement instrument twelve key questions related to implementation of the Value-Driven Health Care Initiative's Four Cornerstones.

NBCH is publicly reporting eValue8 performance results from the Four Cornerstone focused measures.