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 more willing to spend $3 to $4 on out-of-pocket copayments than $1 on premiums. Nevertheless, sensitivity to monthly premium is greatest among those who are younger and cover only themselves, whereas sensitivity to the annual deductible is greatest among nonwhite families.
Conclusion: Employees are facing a complicated choice and might be well-served by more information about the value of options under different likelihood scenarios.
From the Department of Marketing (Dr Schwartz), A.B. Freeman School of Business, Tulane University, New Orleans, LA; Department of Medicine (Dr Hadler), University of North Carolina at Chapel Hill, Chapel Hill, NC; Department of Marketing (Drs Ariely and Huber), Duke University's Fuqua School of Business, Durham, NC; and Emerick Consulting LLC (Mr Emerick), Fayetteville, AR.
Address correspondence to: Nortin M. Hadler, MD, Department of Medicine, 3330 Thurston Bldg CB #7280, University of North Carolina, Chapel Hill, NC 27517 (firstname.lastname@example.org).
The study was performed without external funding.
The authors have no conflicts of interest