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  • January 2021
  • Case
  • HBS Case Collection

Value-Based Insurance Design at Onex

By: Joshua Schwartzstein, Amitabh Chandra and Amram Migdal
  • Format:Print
  • | Language:English
  • | Pages:17
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Abstract

The operating executives of Health and Benefits for Onex Partners, Megan Jackson Frye and Sam Camens, faced a challenge: Healthcare costs for employees of Onex’s portfolio companies were continuing to rise above the consumer price index, reflecting broader trends across employer-sponsored health insurance in the U.S. Against this backdrop, Frye and Camens considered recommending that Onex’s portfolio companies adopt value-based insurance design (VBID) principles to encourage employees to take high-value medications, for example by reducing copays for drugs managing diabetes or heart conditions. The case encourages students to put themselves in the shoes of Frye and Camens, who were grappling with evidence promoted by VBID’s proponents on its potential to simultaneously improve employee health and curb employer costs. The case includes content on employer-provided health insurance in the U.S., as well as the consequences of cost-sharing on consumer behavior, health, and spending.

Keywords

Decision Making; Cost vs Benefits; Decision Choices and Conditions; Decisions; Finance; Behavioral Finance; Insurance; Health; Health Care and Treatment; Human Resources; Compensation and Benefits; Markets; Demand and Consumers; Consumer Behavior; Social Psychology; Behavior; Interests; Motivation and Incentives; Perception; Health Industry; Insurance Industry; North America; United States

Citation

Schwartzstein, Joshua, Amitabh Chandra, and Amram Migdal. "Value-Based Insurance Design at Onex." Harvard Business School Case 921-023, January 2021.
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About The Authors

Joshua R. Schwartzstein

Negotiation, Organizations & Markets
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Amitabh Chandra

Technology and Operations Management
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Related Work

    • December 2021 (Revised February 2023)
    • Faculty Research

    Value-Based Insurance Design at Onex

    By: Joshua Schwartzstein, Amitabh Chandra and Amram Migdal
Related Work
  • Value-Based Insurance Design at Onex By: Joshua Schwartzstein, Amitabh Chandra and Amram Migdal
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