Business Groups Urge Administration to Accelerate Market-Based Health Care Reforms

DRIVE Health Initiative advocates value-based health care to decrease costs, improve quality and revitalize the economy

For Immediate Release

Washington, DC – A national partnership led by two business organizations representing Fortune 500 companies, the Pacific Business Group on Health and The ERISA Industry Committee, announced today the DRIVE Health Initiative, a campaign to accelerate economic growth by controlling health costs and improving quality through the rapid adoption of value-based health care. DRIVE stands for “Deliver Results, Innovation and Value for Everyone.” The group, which includes some of the largest employers, today sent a letter directly to President Donald Trump and Health and Human Services Secretary Tom Price urging targeted deregulation and market-based purchasing strategies, and offered a policy blueprint with a plan of action grounded in evidence from large employers’ innovations that have improved health care efficiency and effectiveness.

“It’s absolutely critical for the health of Americans and our economy that value-based care is quickly embedded in the health care system,” said David Lansky, President and CEO of the Pacific Business Group on Health. “Policymakers must focus on what works to achieve these goals, and we know that value- based care helps to drive down costs and improve patient outcomes.”

America spends far more than any other country on health care, but our outcomes are below average compared to other developed countries on many key health care indicators. Health care spending outpaces GDP and inflation growth, sapping America’s economic health. This misalignment in spending and outcomes is partially the result of the fee-for-service payment model, which pays solely for the volume of health care services without regard to quality, and is still used in over 80 percent of health care transactions.

Value-based care and market-based strategies — including value-based payment, transparency, consumer engagement, and healthy competition — have the proven potential to incentivize high-quality patient care. This market-based approach builds upon 20 years of innovation in payment, benefit design and consumer engagement by the business community. Value-based care ensures patients receive better care and can make more informed choices, providers are rewarded for achieving quality patient outcomes, purchasers are paying for what works, and businesses can invest in jobs and innovation.

“Value-based care should be front and center when policymakers look for ways to improve quality and make health care more accessible and affordable,” said Annette Guarisco Fildes, President and CEO of The ERISA Industry Committee. “Remember, the government pays for insurance for about 100 million people. In order to cut taxes and fund other national priorities, we’ve got to drive government efficiency, effectiveness and accountability — and there is no better or more proven way to do that than promoting value-based care, short of curing diseases altogether.”

The Initiative’s policy blueprint, found on its website, urges immediate targeted deregulation and other actions to break down policy barriers that discourage value-based care innovation and prevent the health care market from delivering valuable products at affordable costs. The Initiative also urges the administration, as the largest single purchaser of health care, to align with private sector purchaser strategies and continue to progress toward value-based care. The blueprint focuses on the following elements:

  1. Consumer Engagement and Appropriate Financial Incentives, including smarter use of Health Savings Accounts in High Deductible Health Plans; lower cost-sharing for high-value chronic care management services; and more flexible use of value-based care for Medicare beneficiaries.
  2. Alternative Provider Payment Models, including prospectively-set payments for comprehensive bundles; larger financial incentives for providers accepting two-sided financial risk; strong financial incentives for hospitals to provide high-quality care, including the reduction of avoidable readmissions and hospital-acquired conditions; prospective enrollment in Medicare Accountable Care Organizations; and wider use of telehealth services.
  3. Transparency and Performance Measures, including stronger requirements for standardized measures of clinical outcomes, patient-reported outcomes and patient experience; creation of aggregated databases that pool data from various sources, including clinical data from providers and hospitals as well as insurance claims data; and stronger interoperability requirements for electronic medical records and patient-generated data.


All media inquiries to The ERISA Industry Committee should be directed to:

Kelly Broadway, 202.627.1918,

About the ERISA Industry Committee
ERIC is the only national association that advocates exclusively for large employer plan sponsors on health, retirement, compensation, and paid leave public policies at the federal, state, and local levels. With member companies that are leaders in every sector of the economy, ERIC promotes uniformity and flexibility for nationwide benefit plans.