Why Do Employees Keep Choosing the Expensive Health Care Plan? An Investigation of the Quality and Logic of Employee Health Care Plan Selections

摘要: In 1991, The Dannon Company provided 287 of its employees with a choice healthcare plans. new plan was less expensive and designed to fit employees' needs better. Contrary managerial expectation, threequarters continued choose the more plan. To study why this occurring determine if these choices reflected employee "mistakes," cooperative effort begun between Cornell University. This allowed us investigate problem using actual medical claims. Analysis revealed strive not only minimize costs, but also avoid risk in their health care decisions. Overall, most significant cost difference chose lowest total costs. effect translated into financial savings for employees. Employees were better off as group freedom make own selections than they would have been had forced either two available options. Thus, demonstrated that is valuable Implications future research are discussed.