This chapter explores the paradigm shift from volume-based to value-based healthcare delivery, emphasizing its significance within the Indian health insurance sector. It delineates the core principles of value-based care (VBC), which aims to enhance health outcomes while optimizing healthcare costs. By shifting the emphasis toward patient-centric care, VBC seeks to enhance efficiency, quality, and responsiveness in healthcare delivery. A key aspect of VBC is the alignment of incentives among healthcare providers, payers, and policymakers to encourage high-quality care. This requires robust performance metrics and outcome-based reimbursement mechanisms. The adoption of health technology also plays an important role in enabling VBC. Digital health interventions, including telemedicine and electronic health records (EHRs), facilitate real-time monitoring and enhance care coordination. The integration of such technologies is essential for tracking patient outcomes and ensuring accountability in healthcare delivery. Despite its potential benefits, the implementation of VBC in India faces several challenges. These include infrastructural gaps, limited data interoperability, provider resistance, and the need for standardized quality metrics. Addressing these challenges requires policy interventions, capacity building, and stakeholder collaboration to create a conducive environment for VBC adoption. Recent policy initiatives, such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, provide an opportunity to incorporate value-based principles into India’s health insurance framework.