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J Health Econ. 2002 Jan;21(1):65-88.

Employee demand for health insurance and employer health plan choices.

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Department of Health Medicine, Stanford University School of Medicine, CA 94305-5405, USA.


Although most private health insurance in US is employment-based, little is known about how employers choose health plans for their employees. In this paper, I examine the relationship between employee preferences for health insurance and the health plans offered by employers. I find evidence that employee characteristics affect the generosity of the health plans offered by employers and the likelihood that employers offer a choice of plans. Although the results suggest that employers do respond to employee preferences in choosing health benefits, the effects of worker characteristics on plan offerings are quantitatively small.

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