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Employee health insurance decisions in a flexible benefits environment
Author(s) -
Barringer Melissa W.,
Milkovich George T.
Publication year - 1996
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/(sici)1099-050x(199623)35:3<293::aid-hrm2>3.0.co;2-s
Subject(s) - salary , deductible , employee benefits , business , actuarial science , plan (archaeology) , marital status , health insurance , cash , maximization , health care , economics , finance , microeconomics , environmental health , medicine , population , archaeology , market economy , history , economic growth
This study investigates the factors which influence employees' choices among different health insurance options under a flexible benefits plan. Employee‐specific selection and demographic data provided by the former National Cash Register (NCR), were used to analyze the effects of employee and plan characteristics on choice of health care plan. Results suggest that employees' health plan choices are influenced by premium, deductible, and coinsurance amounts, and by employees' age, gender, salary, and marital status. The results are considered within an expected utility maximization model. Implications for the design of flex plans as well as future research and theory are discussed. © 1996 by John Wiley & Sons, Inc.