Regret in health insurance post‐purchase behavior

Abstract

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.

Predicting the Intention and Purchase of Health Insurance Among Malaysian Working Adults

“…This stipulates the significance of subscribing to medical care coverage in seek of healthcare services (Rahman, Newaz et al, 2021). Nevertheless, the decision to purchase health insurance is not easy, which is often misconstrued by buyers (Loewenstein et al, 2013) who typically have the right to claim through the insurance policy (Born & Sirmans, 2019). Referring to the vast range of insurance mechanisms, adults have been claiming healthcare insurance throughout the year.…”

An Overview of Framing Behaviors in Financial Decisions

“…As when it comes to the idea of purchasing an insurance policy, primarily medical and life insurances, the way people make their choices is very complex (Gottlieb & Mitchell, 2019;Born & Sirmans, 2019). The choice to purchase an insurance policy or not requires a cost-benefit analysis from the insured (Born & Sirmans, 2019). However, it's important to note that the analysis shouldn't only include the financials and that is what many people do wrong (Born & Sirmans, 2019).…”

“…The choice to purchase an insurance policy or not requires a cost-benefit analysis from the insured (Born & Sirmans, 2019). However, it's important to note that the analysis shouldn't only include the financials and that is what many people do wrong (Born & Sirmans, 2019). The need of hospitalization, personal medical history, and ease of access to medical care are important to be included in the decision making of purchasing an insurance or not (Born & Sirmans, 2019).…”

“…However, it's important to note that the analysis shouldn't only include the financials and that is what many people do wrong (Born & Sirmans, 2019). The need of hospitalization, personal medical history, and ease of access to medical care are important to be included in the decision making of purchasing an insurance or not (Born & Sirmans, 2019). Unfortunately, many face the feeling of regret after purchasing an insurance by narrow bracketing their decision, an idea discussed more clearly in the coming parts.…”

“…Similarly, Gootlieb and Mitchell (2019) researched about people's behavior in purchasing long-term care insurances in the US. In its nature, the behavior of purchasing an insurance policy is skewed towards relieving the insured from the possible financial burdens which might incur due to an accident (Gottlieb & Mitchell, 2019;Born & Sirmans, 2019). With the probability of an accident happening being negligeable and the premiums to purchase an insurance policy being remarkable, people often regard insurances as bad investments (Webb & Shu, 2017;Gottlieb & Mitchell, 2019;Born & Sirmans, 2019).…”