Choosing Among Employer Sponsored Health Plans: What Drives Employee Choices?

Journal of Occupational and Environmental Medicine, Forthcoming

Posted: 26 Oct 2012

See all articles by Janet Schwartz

Janet Schwartz

Tulane University - A.B. Freeman School of Business

Nortin M Hadler

School of Medicine, University of North Carolina at Chapel Hill

Dan Ariely

Duke University - Fuqua School of Business

Joel C. Huber

Duke University - Fuqua School of Business

Thomas Emerick

Emerick Consulting LLC

Date Written: October 26, 2012

Abstract

Objective: To probe employee basis for choosing health plans.

Methods: In a web-study 337 employees from large private and public employers were asked to choose among health plans varying on several common dimensions.

Results: On per dollar basis respondents were willing to spend $3 to $4 more on out-of-pocket copayments than $1 dollar on premiums. However, sensitivity to monthly premium is greatest among those who are younger and cover only themselves whereas sensitivity to the annual deductible is greatest among non-white families.

Conclusions: Employees are facing a complicated choice and might be well served by more information as to the value of options under different likelihood scenarios.

Keywords: Health insurance, open enrollment, conjoint analysis

JEL Classification: G22

Suggested Citation

Schwartz, Janet and Hadler, Nortin M and Ariely, Dan and Huber, Joel C. and Emerick, Thomas, Choosing Among Employer Sponsored Health Plans: What Drives Employee Choices? (October 26, 2012). Journal of Occupational and Environmental Medicine, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2167369

Janet Schwartz

Tulane University - A.B. Freeman School of Business ( email )

7 McAlister Drive
New Orleans, LA 70118
United States

Nortin M Hadler (Contact Author)

School of Medicine, University of North Carolina at Chapel Hill ( email )

1022 Highland Woods
Chapel Hill, NC 27517-4410
United States
919-616-3006 (Phone)
919-929-6964 (Fax)

HOME PAGE: http://https://www.med.unc.edu/tarc/people/nortin-m-hadler

Dan Ariely

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
(919) 381-4366 (Phone)

Joel C. Huber

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7785 (Phone)

Thomas Emerick

Emerick Consulting LLC ( email )

16225 River Ridge N
Fayetteville, AR 72704
United States

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