Health Plan Switching among Members of the Federal Employees Health Benefits Program

• Main Authors: Adam Atherly, Curtis Florence, Kenneth E. Thorpe
• Format: Article
• Language: English
• Published: SAGE Publishing 2005-08-01
• Series: Inquiry: The Journal of Health Care Organization, Provision, and Financing
• Online Access: https://doi.org/10.5034/inquiryjrnl_42.3.255

This paper examines factors associated with switching health plans in the Federal Employees Health Benefits Program. Switching plans is not uncommon, with 12% of members switching plans annually. Individuals switch out of plans with premium increases and benefit decreases relative to other plans in the market. Switching is negatively associated with age due to increasing switching costs associated with age rather than decreasing premium sensitivity. Individuals in preferred provider organizations are less likely to switch, but are more responsive to premium increases than those in the managed care sector. Those who do switch plans are likely to switch to a different plan in the same sector.