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Predicting Employee Health Insurance Selections in a Flexible Benefits Environment

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Abstract

Firms are increasingly introducing flexible benefits programs into their employee compensation packages, yet very little is known about program outcomes. This study investigated the determinants of employees' selections among six different health insurance options. Using employee-specific selection and demographic data provided by a large manufacturing firm, we estimated a logistic regression model to analyze the effects of employee and plan characteristics on choice of health care plan. Results suggest that employees' decisions about health insurance are significantly influenced by their age, gender, salary, and marital status. Employee premiums (cost to the employee) did not have a significant effect on health care decisions in this study.

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Description

Sponsorship

Date Issued

1991-05-08

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Keywords

CAHRS; ILR; center; human resource; job; worker; advanced; labor market; satisfaction; employee; work; manage; health insurance; flexible benefits; firms; salary; labor market; salary; marital status; gender; compensation

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Employer

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Government Document

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preprint

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