RD381 - Implementation of Shared-Services Incentive Program – October 22, 2018

Executive Summary:

Chapter 2, Item 82.J. of the 2018 Special Session I, Virginia Actos of Assembly requires the Department of Human Resource Management (DHRM) to report to the Chairmen of the House Appropriations and Senate Finance Committees by November 1, 2018 on the progress of implementing a shared-services incentive program for the state employee health plan and The Local Choice health plan (TLC).

A shared-services incentive program (sometimes referred to as a shared-savings incentive program) provides a process that encourages health plan participants to “shop" for certain medical services, as identified by the program, and provides the tools to identify bettervalue/lower-cost facilities in which to seek these services. When the better-value facility is chosen, the participant earns an incentive payment. Incentives range from $25 to $500 depending on the service and chosen facility. The health plan also benefits due to lower costs for the services.