Consumer price sensitivity and health plan choice in a regulated competition setting

Health Economics
Tamara Bischof, Christian Schmid

Abstract

We estimate premium elasticities in a regulated competition market based on a quasi-exogenous premium increase for young adults in Switzerland. We exploit that individuals born before the turn of the year ("treatment group") face a larger increase in premiums than individuals born after the turn of the year ("control group"). We find that the treatment group is 1.5 times more likely to switch their health plan than the control group. Overall, individuals respond to premium increases by choosing more frequently health plans with managed care features, increasing the deductible, and by switching the insurer. Regarding health plan choice, we find an average elasticity of -0.56 with regard to the relative premium difference of any plan to the status quo contract. The elasticity is up to 5 times larger for the treated (-1.03) than for the controls (-0.19). Our results are not driven by health status as measured by health care expenditures and chronic conditions. Rather, our findings suggest that the difference in the premium elasticity is driven by the salience of the premium increase. We argue that this finding is of high relevance for health care policies that aim at fostering health plan competition.

References

Mar 8, 1997·Journal of Health Economics·T C Buchmueller, P J Feldstein
Nov 5, 1989·Journal of Health Economics·P F Short, A K Taylor
Feb 16, 2002·Journal of Health Economics·Bruce A StrombomPaul J Feldstein
Jul 3, 2004·Health Services Research·Adam AtherlyRoger Feldman
May 20, 2005·Applied Health Economics and Health Policy·Trea Laske-AldershofCarine Van de Voorde
Aug 19, 2008·International Journal of Health Care Finance and Economics·Machiel van DijkAnne de Boo
Sep 16, 2008·National Bureau of Economic Research Bulletin on Aging and Health
Aug 13, 2011·The Quarterly Journal of Economics·Raj ChettyLuigi Pistaferri
Nov 16, 2014·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Jonas B PendzialekStephanie Stock
Aug 16, 2017·Journal of Health Economics·Cornel KaufmannStefan Boes
Jan 1, 2015·The American Economic Review·Jonathan D KetchamChristopher A Powers

❮ Previous
Next ❯

Related Concepts

Trending Feeds

COVID-19

Coronaviruses encompass a large family of viruses that cause the common cold as well as more serious diseases, such as the ongoing outbreak of coronavirus disease 2019 (COVID-19; formally known as 2019-nCoV). Coronaviruses can spread from animals to humans; symptoms include fever, cough, shortness of breath, and breathing difficulties; in more severe cases, infection can lead to death. This feed covers recent research on COVID-19.

Blastomycosis

Blastomycosis fungal infections spread through inhaling Blastomyces dermatitidis spores. Discover the latest research on blastomycosis fungal infections here.

Nuclear Pore Complex in ALS/FTD

Alterations in nucleocytoplasmic transport, controlled by the nuclear pore complex, may be involved in the pathomechanism underlying multiple neurodegenerative diseases including Amyotrophic Lateral Sclerosis and Frontotemporal Dementia. Here is the latest research on the nuclear pore complex in ALS and FTD.

Applications of Molecular Barcoding

The concept of molecular barcoding is that each original DNA or RNA molecule is attached to a unique sequence barcode. Sequence reads having different barcodes represent different original molecules, while sequence reads having the same barcode are results of PCR duplication from one original molecule. Discover the latest research on molecular barcoding here.

Chronic Fatigue Syndrome

Chronic fatigue syndrome is a disease characterized by unexplained disabling fatigue; the pathology of which is incompletely understood. Discover the latest research on chronic fatigue syndrome here.

Evolution of Pluripotency

Pluripotency refers to the ability of a cell to develop into three primary germ cell layers of the embryo. This feed focuses on the mechanisms that underlie the evolution of pluripotency. Here is the latest research.

Position Effect Variegation

Position Effect Variagation occurs when a gene is inactivated due to its positioning near heterochromatic regions within a chromosome. Discover the latest research on Position Effect Variagation here.

STING Receptor Agonists

Stimulator of IFN genes (STING) are a group of transmembrane proteins that are involved in the induction of type I interferon that is important in the innate immune response. The stimulation of STING has been an active area of research in the treatment of cancer and infectious diseases. Here is the latest research on STING receptor agonists.

Microbicide

Microbicides are products that can be applied to vaginal or rectal mucosal surfaces with the goal of preventing, or at least significantly reducing, the transmission of sexually transmitted infections. Here is the latest research on microbicides.

Related Papers

Journal of Health Economics
Bruce A StrombomP J Feldstein
International Journal of Health Care Finance and Economics
Frederik T SchutJuergen Wasem
Inquiry : a Journal of Medical Care Organization, Provision and Financing
Adam AtherlyKenneth E Thorpe
Medical Products Sales : MPS : the Official Journal of the American Surgical Trade Association
D Albertson
© 2022 Meta ULC. All rights reserved