Choosing Among Employer Sponsored Health Plans: What Drives Employee Choices?
Journal of Occupational and Environmental Medicine, Forthcoming
Posted: 26 Oct 2012
Date Written: October 26, 2012
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: Suggested Citation