We examine the premium consequences of alterna- tive health insurance provisions by estimating pricing regres- sions for group insurance with data on 9019 fee-for-service (FFS) plans offered by larger firms in the private sector. We find that cost-sharing at the point of purchase, especially for hospital care, significantly lowers FFS premiums. However, some aspects of plan design which are often touted as cost- reducing, such as self-insuring or offering employees the option to join a health maintenance organization, are found to in- crease premiums. Coverage of alcoholism/chemical depen- dency treatments, inpatient mental health care, and psycholo- gists' services, which are mandated in many states, are found to be expensive.
