Value-Driven Health Care Purchasing: Case Study of Wisconsin's Department of Employee Trust Funds

August 15, 2007 | Volume 71

Authors: Sharon Silow-Carroll, M.B.A., M.S.W. and Tanya Alteras, M.P.P.
Contact: ssilowcarroll@healthmanagement.com

Overview

The Wisconsin Department of Employee Trust Funds (ETF), the largest purchaser of employer coverage in the state, has pursued value for state and local government employees and their families through a number of means, including: public reporting of health plan performance; tiered premiums used to encourage members to purchase more efficient plans; financial rewards to health plans that meet cost and quality benchmarks; an innovative pharmacy benefit management model emphasizing transparency; and a statewide public–private health data repository. Cooperation and dialogue among like-minded stakeholders is very strong in the Wisconsin health care market and has contributed to ETF's success in moderating its costs. One of the challenges ETF now faces is how to shift its value-driven strategies from models that emphasize cost to ones emphasizing quality. The community is also experiencing challenges in minimizing duplication and confusion in its efforts to pursue value in health care purchasing.


Companion Case Studies:


Massachusetts Group Insurance Commission

Minnesota Smart Buy Alliance

Puget Sound Health Alliance


Overview Report

Value-Driven Health Care Purchasing: Four States that Are Ahead of the Curve

Citation

S. Silow-Carroll and T. Alteras, Value-Driven Health Care Purchasing: Case Study of Wisconsin's Department of Employee Trust Funds, The Commonwealth Fund, August 2007

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