The reasons for non-corporate private health insurance purchase in the UK: the results of a new aurvey and an econometric analysis of the determinants of purchase

This paper presents the results of a detailed survey designed to explore the factors associated with purchase of private health insurance in England. The survey, a nationally representative survey of the population of England aged 25 to 70, was carried out in the first 4 months of 1987. The achieved sample was 1360 individuals. The survey sought detailed information on both the reasons for health insurance purchase and the reasons for non-purchase by individuals and families. The paper is in two parts. In the first part the survey is analysed in depth. Tables are presented showing the pattern of health insurance across different socio-economic groups and regions of England. These tables are compared to those from the latest General Household Survey (GHS) which asked questions on insurance (the 1983 survey). The large size of the current sample means that the results in this part of the discussion paper can be treated as a partial up date to the GHS. In addition, the paper examines the motives for self purchase, consideration of purchase and non-purchase of health insurance. In the second part of the paper, multivariate analysis is used to examine the determinants of self-purchase and consideration of purchase. The econometric estimates indicate that the annual purchase and consideration of purchase should probably be treated as two separate events.