Publication Date

May 1991


Firms are increasingly introducing flexible benefits programs into their employee compensation packages, yet very little is known about program outcomes. This study investigated the determinants of employees' selections among six different health insurance options. Using employee-specific selection and demographic data provided by a large manufacturing firm, we estimated a logistic regression model to analyze the effects of employee and plan characteristics on choice of health care plan. Results suggest that employees' decisions about health insurance are significantly influenced by their age, gender, salary, and marital status. Employee premiums (cost to the employee) did not have a significant effect on health care decisions in this study.


Suggested Citation
Barringer, M. W., Milkovich, G. T., & Mitchell, O. S. (1991). Predicting employee health insurance selections in a flexible benefits environment (CAHRS Working Paper #91-22). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.