X hits on this document

422 views

0 shares

0 downloads

0 comments

31 / 98

TABLE III.C

Study

Population

Demand Measure

Price Variation

Elasticity Estimate

Barringer and Mitchell (1994)

Employees in a company with four plants across the U.S.

Market share of one FFS plan competing with two other FFS plans and one prepaid group plan

(1) Premium increase in the FFS plan; (2) Doubling deductible in the FFS plan

(1) –0.1 to –0.2 (2) 3 to 4 percentage points reduction in market share

Buchmueller and Feldstein (1997)

University of California employees

Switching rate from current plan (multiple HMOs and a PPO)

Employer switch to a defined contribution benefit that raised the employee share of premium for some employees but not others

A $10 increase in premiums caused 26% of employees to switch plans

Cutler and Reber (1998)

Harvard University employees

The probability of taking up more generous coverage

Relative price change due to university policy change

–0.3 in the first year, and –0.6 in the second year

Royalty and Solomon (1998)

Stanford University employees

The probability of choosing among competing HMO and POS plans

Employee share of premium across competing plan choices

–0.55

Strombom, Buchmueller, Feldstein, (2002)

University of California employees

Market share of competing HMO and PPO plans

Employer switch to a defined contribution benefit that raised the employee share of premium for some employees but not others

For the average plan, a $5 increase in premiums decreased market share by 5%

Goldman et al. (2004)

14,221 employees in a single large firm

Rate of switching from current plan

Increases in employee share of premium

10% premium increase caused 13% to switch to another plan, 7% to drop

SUMMARY OF RECENT STUDIES ON THE PRICE ELASTICITY OF DEMAND FOR HEALTH INSURANCE—EMPLOYEE CHOICE OF PLAN

Using panel data on Stanford University employees, Royalty and Solomon (1998) estimated

an average price elasticity of –0.55 with respect to a change in employees’ share of the premium.

Similarly, Cutler and Reber (1996) used data on Harvard University employees to investigate

enrollment decisions when the relative prices of an HMO and a PPO changed due to an

21

Document info
Document views422
Page views423
Page last viewedSun Dec 04 00:25:07 UTC 2016
Pages98
Paragraphs2978
Words29067

Comments