The Demand for Health Insurance in the Group Setting: Can You Always Get What You Want?

26 Pages Posted: 4 Mar 2007

See all articles by Mark V. Pauly

Mark V. Pauly

University of Pennsylvania - Health Care Systems Department; National Bureau of Economic Research (NBER)

Bradley Herring

Emory University - Department of Health Policy and Management

Abstract

To what extent do health benefits obtained in the employment-based setting reflect individual preferences? We examine this question by comparing the relationship between person-level characteristics and the plans they obtain in a group setting to the relationship observed in the individual insurance market, using data from the 1996-1997 and 1998-1999 Community Tracking Study's Household Surveys. We also examine the effect of unions on group choice. Our structural models of the demand for insurance indicate that plans obtained in the group setting often reflect underlying individual preferences for insurance, but we consistently observe significantly different effects of ethnicity and unionization.

Suggested Citation

Pauly, Mark V. and Herring, Bradley, The Demand for Health Insurance in the Group Setting: Can You Always Get What You Want?. Journal of Risk & Insurance, Vol. 74, No. 1, pp. 115-140, March 2007. Available at SSRN: https://ssrn.com/abstract=967840 or http://dx.doi.org/10.1111/j.1539-6975.2007.00204.x

Mark V. Pauly (Contact Author)

University of Pennsylvania - Health Care Systems Department ( email )

3641 Locust Walk
208 Colonial Penn Center
Philadelphia, PA 19104-6358
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Bradley Herring

Emory University - Department of Health Policy and Management ( email )

1518 Clifton Road NE
Atlanta, GA 30322
United States

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