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Value-Based Care in Commercial Insurance: A Home Care Advantage

Susan Ehrlich, R.N., B.S.N., C.P.D., C.I.C.
Published On
May 20, 2026

Hospital readmissions cost the U.S. healthcare system more than $50 billion annually, with Medicare bearing a substantial portion of these costs. For commercial insurers, these costs directly impact financial performance and quality metrics. 

As reimbursement models shift, payors are under increasing pressure to improve outcomes while controlling the total cost of care. Value-based home care is emerging as a critical strategy by extending care into the home, where many health issues first become harder to manage. This approach supports proactive care, improved adherence, better patient experience and more efficient care delivery. 

What Value-Based Care Means for Insurers 

Value-based care is reshaping how insurers evaluate performance, structure contracts and engage care delivery partners. Today, many healthcare organizations operate in hybrid environments that include fee-for-service (FFS) and value-based reimbursement, making outcome-driven strategies essential across models. 

Outcomes Over Volume 

Traditional FFS models reward volume, which can lead to fragmented care and unnecessary utilization.  

Value-based care shifts the focus to quality metrics such as: 

  • Hospital readmissions 
  • Emergency department use 
  • Patient adherence 

For payors, a value-based care approach improves coordination and helps manage high-risk populations more effectively. It also aligns financial incentives with long-term outcomes rather than short-term service delivery. 

Nearly 45 percent of all U.S. healthcare payments are now tied to value-based models, according to America’s Health Insurance Plans (AHIP), reinforcing the need for scalable, outcome-driven solutions. 

Financial Incentives and Risk Models 

Alternative payment models (e.g., bundled payments, shared savings arrangements) place greater financial responsibility on payors and providers. When care isn’t well-coordinated or intervention comes too late, costs can rise quickly. 

More than 25 percent of U.S. healthcare spending (totaling over $730 billion annually) stem from gaps in post-acute care or unmanaged chronic conditions such as diabetes and heart disease. 

Value-based home care helps address these challenges by improving continuity of care, supporting non-medical needs and enabling earlier intervention. 

As financial risk grows, insurers benefit from nurse-led in-home care and medical staffing partners who can support patients at home, where many of these issues begin. 

How Home Care Supports Value-Based Models  

Home care extends clinical and non-medical support into patients’ homes, helping address key drivers of cost and outcomes that are often missed in traditional care settings. 

Preventing High-Cost Utilization 

Reducing avoidable utilization is one of the most immediate benefits of home care integration. 

Structured transitional care programs can reduce hospital readmissions by up to 45 percent. These improvements are often tied to patient-centered discharge planning, home visits, better follow-up care, earlier identification of complications and more consistent patient support. 

BrightStar Care® provides RN-led care during critical transition periods. Services such as mobility assistance, medication reminders and condition monitoring help identify issues early and prevent escalation. 

Our proactive approach reduces emergency department visits and inpatient stays, which are among the highest cost drivers for commercial insurers. 

For payors, preventing even a small percentage of these events can lead to meaningful cost savings and improved utilization metrics.  

Improving Patient Adherence and Outcomes 

Patient adherence continues to be a major barrier to achieving value-based goals. According to the 2025 article, “Medication Adherence Measurement in Chronic Diseases: A State-of-the-Art Review of the Literature,” approximately half of patients with chronic conditions fail to adhere to medication recommendations

Challenges such as limited mobility, lack of caregiver support and social factors often prevent patients from following care plans consistently. 

Home care addresses these challenges directly. BrightStar Care teams assist with activities of daily living, reinforce care plans and provide consistent oversight through RN-led care. This support improves adherence, stabilizes chronic conditions and reduces complications over time. 

By addressing both clinical and non-medical needs, home care strengthens performance across key quality metrics and supports better long-term outcomes for patients and payors. 

Measuring Success in Value-Based Care 

Quality Metrics and Benchmarks 

For insurers, the success of any care model must be demonstrated through measurable improvements. 

In value-based care models, care teams work together across physical, mental, behavioral and social needs so patients are supported as whole people, not just diagnoses. When care is more coordinated, it becomes easier to prevent gaps that can lead to complications or avoidable costs. 

To evaluate performance, insurers and health systems rely on clear quality metrics, including: 

  • Improved clinical outcomes such as fewer readmissions and reduced emergency department visits 
  • Patient satisfaction and overall experience 
  • Lower total cost of care 
  • Better adherence to medications and preventive services 
  • Progress in advancing health equity 

Home-based care extends care beyond the clinic by supporting patients in the days and weeks after discharge or between provider visits. 

This consistent and ongoing support helps reinforce care plans, close care gaps early and keep patients engaged in their recovery. Over time, this helps reduce complications and improve consistency in outcomes. 

BrightStar Care aligns its services with partner-defined quality measures to support consistency across locations and strengthen accountability in performance tracking. This makes it easier for payors and partners to see where improvements are happening and demonstrate real progress in value-based care initiatives. 

Cost Savings and ROI 

Home-based care helps lower overall healthcare costs by reducing hospital stays and helping people better manage long-term conditions. According to recent research from the Centers for Medicare & Medicaid Services (CMS), patients in higher-acuity home care programs experienced lower mortality rates, reduced complications and lower 30-day Medicare spending compared to traditional hospital settings. 

Even small improvements, like better medication adherence or earlier follow-up care, can make a real difference in total healthcare costs over time. 

Because of this, home care is becoming a smart investment that helps payors improve outcomes, manage costs and show clear value in value-based care programs. 

BrightStar Care®'s Value-Based Approach 

BrightStar Care supports value-based care through coordinated, patient-centered services delivered across a national network of locations. 

Coordinated, Patient-Centered Care 

BrightStar Care operates as a seamless extension of partner teams, providing both Skilled Nursing and Personal Care to support patients across the continuum. 

Services include Hospital-at-Home & Acute Care-at-Home, transitional care and ongoing support for chronic conditions. These services allow patients to remain safely in their homes while receiving the care they need. 

RN-led care provides clinical oversight, while caregivers deliver essential non-medical support that enables daily function and independence. 

This integrated approach improves coordination, supports patient dignity and contributes to stronger quality metrics. 

Data-Driven Performance Tracking 

In value-based care, results must be clear, measurable and easy to track. 

BrightStar Care tracks outcomes using established quality metrics and partner-aligned benchmarks. This includes looking at how often patients use high-cost services, how well they follow care plans and how they feel about their care experience. 

These insights help partners understand what’s working, where gaps exist and how care can be improved over time, including:  

  • Hospital and emergency room use trends over time 
  • How well patients follow medications and care instructions 
  • Follow-up care completion after discharge or provider visits 
  • Patient satisfaction and feedback scores 
  • Frequency of preventable complications or setbacks 
  • Timeliness of care after hospital discharge 
  • Gaps in care coordination between providers and settings 

By combining RN oversight with data-driven tracking, BrightStar Care helps organizations achieve consistent, measurable outcomes aligned with their value-based care goals. 

Why Payers Are Investing in Home Care 

Scalability and Flexibility 

Home care can support many different patient needs across recovery, chronic illness and long-term support. It helps people stay safe and comfortable at home while getting the right level of care. 

BrightStar Care services include: 

Non-medical home care 

  • Companion care:  Help with errands, transportation and reducing loneliness 
  • Personal care:  Help with meal prep, bathing, dressing, mobility and daily activities 
  • Short-term transitional care (to support recovery after a hospital or rehab stay) 

These services focus on safety, comfort and daily support. They also help reduce stress for families and support better day-to-day stability at home. 

Clinical and specialized care 

  • Skilled nursing care for complex needs (e.g., wound care, infusions and chronic condition management) 
  • Alzheimer’s and dementia care 
  • In-home therapy services (e.g., physical, occupational and speech therapy) 
  • Pediatric home care and nursing support for children with medical or developmental needs 

These services are coordinated with a patient’s primary care physician, ensuring care is safe, consistent and aligned with the overall care plan. 

Our national footprint allows payors to use consistent care models across different markets while still meeting local needs. This is important when managing large and diverse patient groups. 

Home care services can be adjusted based on how much support a patient needs. Higher-risk patients can get more frequent care, while lower-risk patients may need less. This helps improve efficiency and makes better use of resources. 

Alignment With Long-Term Strategy 

Value-based care is a long-term shift in how healthcare is paid for and delivered. Because of this, payors are investing in solutions that help lower total costs, improve quality and create better experiences for members. Home care brings care directly to patients and supports them outside of clinics and hospitals. This helps prevent problems before they become more serious. 

As insurers continue to adjust their strategies, home care is becoming an important part of building a stronger, more sustainable care system. 

Leveraging Home Care to Achieve Value-Based Success 

Value-based care requires a more coordinated approach to managing patient health that extends beyond traditional care settings. 

Home care is a strategic solution that helps payors improve outcomes, reduce costs and support patient experience across both value-based and fee-for-service models. 

BrightStar Care partners with organizations to deliver RN-led, patient-centered care aligned with measurable performance goals. 

Partner with BrightStar Care to strengthen your home care strategy and drive meaningful results. 
 

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