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Despite the importance of private insurance in the financing of Australia's health care system, there have been few studies of health insurance choice. A survey was carried out of employees of two large organisations to serve as a reference group for middle‐income people in secure employment. Insurance was associated with income, age, marital status and history of medical costs; but not dependents or hospital expenses. Main determinants of level of cover were income and medical costs. In making decisions, information search was low and decisions seem to be made on the basis of simple risk aversion, influenced by insurers' advertising.
Australian Journal of Social Issues – Wiley
Published: May 1, 1993
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