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Related Experiment Videos

Health plan report cards and insurance choice

M Chernew1, D P Scanlon

  • 1Department of Health Management and Policy, School of Public Health, University of Michigan, Ann Arbor 48109-2029, USA.

Inquiry : a Journal of Medical Care Organization, Provision and Financing
|May 23, 1998
PubMed
Summary

Consumers

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Area of Science:

  • Health Economics
  • Consumer Behavior
  • Health Services Research

Background:

  • Health plan performance ratings are increasingly available to consumers.
  • Understanding how these ratings influence consumer choices is crucial for healthcare policy.
  • Previous research has not fully explored the impact of detailed performance data on enrollment decisions.

Purpose of the Study:

  • To investigate the relationship between employee health plan choices and disseminated health plan performance ratings.
  • To determine which dimensions of performance ratings significantly influence consumer enrollment decisions.
  • To assess the relative importance of performance ratings versus unobserved plan attributes.

Main Methods:

  • Utilized data from a large firm's initiative to collect and disseminate health plan performance ratings to employees.
  • Employed statistical models, including share equations to account for unobserved plan attributes.
  • Estimated logit models to analyze enrollment choices based on performance data.

Main Results:

  • Health plan performance ratings show a relationship with employee enrollment choices, but this influence is not uniform across all performance dimensions.
  • For certain performance dimensions, employees appear to respond to the provided ratings.
  • Other plan attributes, observable without the released data, were found to be more influential than ratings for some dimensions.

Conclusions:

  • Disseminated health plan performance ratings can influence consumer choices, particularly for specific performance aspects.
  • The impact of performance ratings is moderated by the presence of other salient plan attributes.
  • Future interventions should consider how to best present performance data to maximize its influence on consumer decision-making.

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