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 (2) Citing Articles via Google Scholar Google Scholar Articles by Thorpe, K. E. Articles by Gray, B. Search for Related Content PubMed PubMed Citation Articles by Thorpe, K. E. Articles by Gray, B. Related Collections Insurance - Employer-Based System

Health Affairs, Vol 18, Issue 6, 194-202
Copyright © 1999 by Project HOPE

DataWatch

Market incentives, plan choice, and price increases

The Federal Employees Health Benefits Program (FEHBP) has attracted considerable interest for its ability to control health care costs. We examine the impact of the FEHBP's maximum dollar contribution on incentives to select low-cost plans and the growth in insurance premiums over time. Unless the maximum dollar contribution is pegged to a low-price plan, few enrollees select such plans. Moreover, premiums rise at least five percentage points per year faster among plans below this fixed subsidy level than they do in plans above it. Our results have important implications for the design of similar market-based approaches.

                      What's this?

This article has been cited by other articles:

				C. Edwards, A. Counsell, C. Boulton, and C. G. Moran Early infection after hip fracture surgery: RISK FACTORS, COSTS AND OUTCOME J Bone Joint Surg Br, June 1, 2008; 90-B(6): 770 - 777. [Abstract] [Full Text] [PDF]