Choosing among employer-sponsored health plans: what drives employee choices?

Abstract

To probe employee basis for choosing health plans. In a Web study, 337 employees from large private and public employers were asked to choose among health plans varying on several common dimensions. 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. Employees are facing a complicated choice and might be well-served by more information about the value of options under different likelihood scenarios.