Shift in Payment Incentives Shows Signs of Curbing Health Costs

The push to get doctors and hospitals to focus on how they care for a whole person, not just a single symptom, got a boost from North Carolina’s largest insurer as it plans to reduce Obamacare premiums by $238 million. The move may signify a turning point for the health insurance industry, which has been promoting the use of incentives to keep down costs.

Quality vs. Quantity: The traditional fee-for-service model encourages doctors and hospitals to perform a high volume of services. Value-based reimbursements emphasize better coordination of care and can help patients avoid illness.

Progress Documented: “It’s been extremely ...