Which measure of cost is typically used by analysts to examine the impact of insurance premiums on employees' choice of health insurance plans?

The measure of cost that is typically used by analysts to examine the impact of insurance premiums on employees' choice of health insurance plans is the employee's out-of-pocket price. This refers to the actual amount that employees must pay from their own funds when accessing healthcare services, which can include deductibles, copayments, and coinsurance in addition to premiums.

When evaluating health insurance options, employees are particularly concerned about how much they will ultimately pay for care. Therefore, the out-of-pocket price plays a crucial role in their decision-making process, as it directly affects their financial burden and determines the financial feasibility of choosing a particular insurance plan. Understanding this cost helps employees compare different health plans effectively, as they will seek to minimize their total out-of-pocket expenses while maximizing their coverage.

Other measures, such as the total gross premium or the loading percentage, while relevant to the overall cost structure of insurance, do not reflect the immediate financial impact felt by employees in the same way that out-of-pocket expenses do. The insurer's profit is also an important metric in understanding the insurance market, but it does not inform employees about their personal costs related to health care. Thus, the focus on the employee's out-of-pocket price aligns most closely with consumer behavior and