Health insurance choice is investigated using individual data from Australia where all people faced a common limited set of possible health insurance policies. The data cover two separate regimes: one in which insurance choice was for a more generous level of coverage; and one in which the choice was a more dramatic one between insurance and no insurance coverage.

In determining health insurance choice, the results indicate a major role for income; a major role for premium, notably in the first regime; and a minor role for observed factors related to health risk, aside from age and sex.