Premium elasticities of health plan choice.
We estimate out-of-pocket premium elasticities of health plan choice using panel data from five Twin Cities employers. Using simple methods and a small data set, we replicate the findings of our previous study, which was considerably more detailed, difficult, and expensive. An increase of $5 in 1984 dollars ($6.95 in 1993) in the relative out-of-pocket premium for single coverage is predicted to decrease that plan's share of the single coverage market by .112 percentage points. The corresponding elasticity is approximately -7.9. This simple analysis should be repeated by other analysts in their market areas to determine the consistency of findings across geographic areas and over time.
Dowd
B
B
Institute for Health Services Research, School of Public Health, University of Minnesota, Minneapolis 55455-0381.
Feldman
R
R
D004465:Economic Competition; D005381:Financing, Organized; D005382:Financing, Personal; D006264:Health Benefit Plans, Employee / Q000191:economics*; D005102:Health Expenditures; D008329:Managed Care Programs / Q000191:economics; D012044:Regression Analysis; D014481:United States