The demand for private medical insurance

Abstract

This article provides an overview of private medical insurance (PMI) coverage in Great Britain and presents results from an empirical analysis of the demand for PMI. This analysis uses a random effects probit model to investigate the individual purchase decision using a six-year panel from the British Household Panel Survey. The results suggest that income, age, sex, proxies for attitude towards private provision, employment status, regional waiting lists and public health expenditure are associated with the demand for PMI.