Health plan choice and information about out-of-pocket costs: an experimental analysis

Inquiry. 2001 Spring;38(1):35-48. doi: 10.5034/inquiryjrnl_38.1.35.

Abstract

Many consumers are offered two or more employer-sponsored health insurance plans, and competition among health plans for subscribers is promoted as a mechanism for balancing health care costs and quality. Yet consumers may not receive the information necessary to make informed health plan choices. This study tests the effects on health plan choice of providing supplemental decision-support materials to inform consumers about expected health plan costs. Our main finding is that such information induces consumers to bear more risk, especially those in relatively good health. Thus our results suggest that working-age, privately insured consumers currently may be over-insuring for medical care.

Publication types

  • Clinical Trial
  • Controlled Clinical Trial
  • Research Support, U.S. Gov't, Non-P.H.S.
  • Research Support, U.S. Gov't, P.H.S.

MeSH terms

  • Adolescent
  • Adult
  • Consumer Advocacy*
  • Cost-Benefit Analysis
  • Decision Making*
  • Financing, Personal*
  • Health Benefit Plans, Employee / economics*
  • Humans
  • Insurance Coverage / economics*
  • Likelihood Functions
  • Los Angeles
  • Middle Aged
  • Models, Econometric