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Regret in health insurance post‐purchase behavior
Author(s) -
Born Patricia H.,
Sirmans E. Tice
Publication year - 2019
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/rmir.12120
Subject(s) - regret , health plan , actuarial science , purchasing , health insurance , business , logistic regression , group insurance , risk pool , economics , marketing , insurance policy , key person insurance , health care , general insurance , income protection insurance , medicine , machine learning , computer science , economic growth
Unlike other forms of insurance, individuals with health insurance generally expect to make claims through the policy period. Selecting an appropriate level of cost‐sharing is difficult and individuals may, ex‐post, regret the choice of a less‐than‐suitable coverage amount. Using a national health insurance survey of private market consumers from 2013 to 2017, we evaluate the potential for post‐purchase regret in the health plan purchasing decision. We employ an ordered logistic model and find that consumers whose plan choices were likely financially dominated by a foregone alternative are significantly more likely to express regret through reporting significantly lower likelihood of renewal, even when controlling for confounding considerations including affordability, self‐assessed risk, and satisfaction with the plan.