This Article Reprint (PDF) Submit a response to this article Alert me when this article is cited Alert me when eLetters are posted Alert me if a correction is posted Services E-mail this article to a friend Similar articles in this journal Similar articles in ISI Web of Science Similar articles in PubMed Alert me to new issues of the journal Add to My Personal Archive Download to Citation Manager Reprints & Permissions Citing Articles Citing Articles via HighWire Citing Articles via ISI Web of Science (26) Citing Articles via Google Scholar Google Scholar Articles by Buchmueller, T. C. Articles by Feldstein, P. J. Search for Related Content PubMed PubMed Citation Articles by Buchmueller, T. C. Articles by Feldstein, P. J. Related Collections State/Local Issues - California Business Of Health Consumer Issues Insurance Coverage State/Local Issues

Health Affairs, Vol 15, Issue 1, 143-151
Copyright © 1996 by Project HOPE

DataWatch

Consumers' sensitivity to health plan premiums: evidence from a natural experiment in California

A recent policy change by the University of California (UC) provides a unique natural experiment for investigating how consumers respond to financial incentives when choosing health plans. In 1994 UC went from a premium contribution policy that subsidized more costly plans to a policy of contributing a constant dollar amount. As a result, employee premium contributions increased for roughly one-third of university employees. The response to this change in relative prices was strong. Whereas only 5 percent of employees facing constant premium contributions switched plans, roughly one-quarter of those facing premium contribution increases of less than $10 per month switched to lower-cost plans. Higher price increases led to even greater rates of plan switching.

                      What's this?

This article has been cited by other articles:

				J. A. Nyman American Health Policy: Cracks in the Foundation Journal of Health Politics Policy and Law, October 1, 2007; 32(5): 759 - 783. [Abstract] [PDF]

				M. A. McManus, S. Berman, T. McInerny, and S.-f. Tang Weighing the Risks of Consumer-Driven Health Plans for Families Pediatrics, April 1, 2006; 117(4): 1420 - 1424. [Full Text] [PDF]

				M. Tai-Seale Does Consumer Satisfaction Information Matter? Evidence on Member Retention in FEHBP Plans Med Care Res Rev, June 1, 2004; 61(2): 171 - 186. [Abstract] [PDF]

				M. Tai-Seale Voting with Their Feet: Patient Exit and Intergroup Differences in Propensity for Switching Usual Source of Care Journal of Health Politics Policy and Law, June 1, 2004; 29(3): 491 - 514. [Abstract] [PDF]

				D. O. Farley, M. N. Elliott, P. F. Short, P. Damiano, D. E. Kanouse, and R. D. Hays Effect of CAHPS Performance Information on Health Plan Choices by Iowa Medicaid Beneficiaries Med Care Res Rev, September 1, 2002; 59(3): 319 - 336. [Abstract] [PDF]

				A. J. Rush Comprehensive Guide to Interpersonal Psychotherapy Arch Gen Psychiatry, May 1, 2002; 59(5): 474 - 475. [Full Text] [PDF]

				A. C. Enthoven The Fortune 500 Model for Health Care: Is Now the Time to Change? Journal of Health Politics Policy and Law, February 1, 2002; 27(1): 37 - 48. [PDF]