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U.S. health insurance marketplace taxonomy and the influence of labeling on consumer perception of plan suitability

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  • Christopher Hickey
  • Derek T. Tharp

Abstract

This study investigates whether metal categories used in the health insurance marketplace established by the Affordable Care Act influence consumer choice in plan selection. Participants (N = 598) were randomly assigned to a marketplace environment containing either neutral terminology, metal categories, or descriptive labels. Respondents were asked to choose the most appropriate plan for low‐, average‐, and high‐use cases of health care consumption. Despite the bronze plan possessing the lowest estimated cost across each use case, the use of precious metal categories (compared to a neutral control) resulted in lower frequency selection of the gold plan in a low‐use case, higher frequency selection of the silver plan in an average‐use case, and higher frequency selection of the gold plan in a high‐use case. Furthermore, this study finds that beliefs equating more insurance with better health care and normative beliefs regarding the relationship between income and insurance are important predictors of plan selection.

Suggested Citation

  • Christopher Hickey & Derek T. Tharp, 2021. "U.S. health insurance marketplace taxonomy and the influence of labeling on consumer perception of plan suitability," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(1), pages 203-231, March.
    • Handle: RePEc:bla:jconsa:v:55:y:2021:i:1:p:203-231
    DOI: 10.1111/joca.12340
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    References listed on IDEAS

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