Survey to Begin Assessment of HIPC Risk Adjustment Mechanism

How do consumers respond to changes in the prices of their health plans? Researchers at Stanford University conducted a survey of individuals who choose to change health plans and those who do not during open season of the Health Insurance Plan of California (HIPC). The survey was designed to determine consumers' rationale for switching health plans, identify any risk selecting behavior of health plans, and ascertain demographic and other characteristics of employees. This research was the first step in evaluating the importance of price and other factors in the employee's decision to switch heath plans. Results from this survey were analyzed as part of a larger project to evaluate the effects of a risk-adjustment mechanism on consumer and insurer choices within the HIPC.