EVALUATION OF BEHAVIORAL DEMAND MODELS OF CONSUMER CHOICE IN HEALTH-CARE

This article investigates the choice of provider plan (fee for service and health maintenance organizations) and preference for a personal physician by Medicare beneficiaries with the aid of a joint logit (JL) and a nested logit (NL) model The NL model, where the lower level is the choice pertaining to preference for a personal physician and the higher level is the choice of provider plan, better explains consumer behavior. Family income levels and access to adequate transportation capabilities are shown to be important criteria used by the elderly in choosing a provider plan. © 1991, Sage Publications. All rights reserved.