Magnitude and Social Correlates of Poor Decisions in Health Insurance
Type
working paper
Date Issued
2024
Author(s)
Abstract
This study investigates consumer choice in health insurance markets. Despite theoretical expectations, empirical evidence challenges the assumption that the provision of consumer choice enhances consumer welfare. Analyzing Swiss mandatory health insurance, with six deductible plans and standardized services, we identify social characteristics associated with suboptimal decision-making. Results indicate significant financial losses for a substantial number of consumers. While economically disadvantaged populations with lower incomes and less education tend to choose higher coverage plans, this is, on average, not optimal, emphasizing the need for a nuanced understanding of the relationship between consumer choice, social factors, and financial outcomes in health insurance.
Language
English
Keywords
D81
D91
I13
I18 health insurance
decision models
choice quality
HSG Classification
contribution to scientific community
Subject(s)
Division(s)
Eprints ID
266735
File(s)![Thumbnail Image]()
Name
manuscript.pdf
Size
1.14 MB
Format
Adobe PDF
Checksum (MD5)
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