Navigation Links
People prefer 'carrots' to 'sticks' when it comes to healthcare incentives

To keep costs low, companies often incentivize healthy lifestyles. Now, new research suggests that how these incentives are framed as benefits for healthy-weight people or penalties for overweight people makes a big difference.

The research, published in Psychological Science, a journal of the Association for Psychological Science, shows that policies that carry higher premiums for overweight individuals are perceived as punishing and stigmatizing.

Researcher David Tannenbaum of the Anderson School of Management at the University of California, Los Angeles wanted to investigate how framing healthcare incentives might influence people's attitudes toward the incentives.

"Two frames that are logically equivalent can communicate qualitatively different messages," Tannenbaum explains.

In the first study, 126 participants read about a fictional company grappling with managing their employee health-care policy. They were told that the company was facing rising healthcare costs, due in part to an increasing percentage of overweight employees, and were shown one of four final policy decisions.

The "carrot" plan gave a $500 premium reduction to healthy-weight people, while the "stick" plan increased premiums for overweight people by $500. The two plans were functionally equivalent, structured such that healthy-weight employees always paid $2000 per year in healthcare costs, and overweight employees always paid $2500 per year in healthcare costs.

There were also two additional "stick" plans that resulted in a $2400 premium for overweight people.

Participants were more likely to see the "stick" plans as punishment for being overweight and were less likely to endorse them.

But they didn't appear to differentiate between the three "stick" plans despite the $100 premium difference. Instead, they seemed to evaluate the plans on moral grounds, deciding that punishing someone for being overweight was wrong regardless of the potential savings to be had.

The data showed that framing incentives in terms of penalties may have particular psychological consequences for affected individuals: People with higher body mass index (BMI) scores reported that they would feel particularly stigmatized and dissatisfied with their employer under the three "stick" plans.

Another study placed participants in the decision maker's seat to see if "stick" and "carrot" plans actually reflected different underlying attitudes. Participants who showed high levels of bias against overweight people were more likely to choose the "stick" plan, but provided different justification depending on whether their bias was explicit or implicit:

"Participants who explicitly disliked overweight people were forthcoming about their decision, admitting that they chose a 'stick' policy on the basis of personal attitudes," noted Tannenbaum. "Participants who implicitly disliked overweight people, in contrast, justified their decisions based on the most economical course of action."

Ironically, if they were truly focused on economic concerns they should have opted for the "carrot" plan, since it would save the company $100 per employee. Instead, these participants tended to choose the strategy that effectively punished overweight people, even in instances when the "stick" policy implied a financial cost to the company.

Tannenbaum concludes that these framing effects may have important consequences across many different real-world domains:

"In a broad sense, our research affects policymakers at large," says Tannenbaum. "Logically equivalent policies in various domains such as setting a default option for organ donation or retirement savings can communicate very different messages, and understanding the nature of these messages could help policymakers craft more effective policy."


Contact: Anna Mikulak
Association for Psychological Science

Related medicine news :

1. For Fourth of July, People from over 190 Countries Shared Emotions of Pride, Patriotism and Celebration From
2. Lakeland, Florida Joins Best Halfway House Recovery Network, Providing Resources for People Seeking More Support in Their Recovery from Drug and Alcohol Addiction
3. Yoga Course
4. “Shapeshifter Yoga” Teaches People How to Learn Yoga Easily and Quickly – V-kool
5. Healthy Food Recipes
6. “Honey Garlic And Vinegar Miracle” Teaches People How To Make Healthy Meals – Health Review
7. New Mirena IUD Complications Lawsuits Allegations Report: Resource4thePeople Reports Important Multidistrict Litigation Hearing Scheduled
8. Key West, Florida Joins Best Halfway House Recovery Network, Helping People Seek Further Recovery from Drug and Alcohol Addiction
9. David Icke to Launch Global TV and Radio Station Called The People's Voice
10. Arc Creates Huge Mosaic Mural to Highlight the Need for Greater Respect of People with Disabilities
11. New Evidence Based Information on Treatment for Over 8 Million People in the U.S. Affected With Disorders of the Vestibular System
Post Your Comments:
(Date:10/13/2017)... ... October 13, 2017 , ... Lori R. Somekh, founder of the Law ... organization of elder law and special needs planning attorneys. “Membership in ElderCounsel helps our ... a forum to network with elder law attorneys nationwide,” said Somekh. , ...
(Date:10/13/2017)... ... , ... Many families have long-term insurance that covers care for a family ... for care if the client has a cognitive impairment diagnosis. , “What this ... often waived, so the benefits from their insurance start immediately,” said Mechell Vieira, owner ...
(Date:10/13/2017)... ... October 13, 2017 , ... Ellevate Network, the leading network for ... for action towards gender equality at their inaugural Summit in New York City in ... reached a social audience of over 3 million. To watch the Mobilize Women video, ...
(Date:10/13/2017)... ... ... Yisrayl Hawkins, Pastor and Overseer at The House of Yahweh, has released a ... books in the Holy Scriptures, Revelation. The Book of Revelation paints a picture of ... have tossed it off as mere rubbish, but Yisrayl Hawkins says that is because ...
(Date:10/13/2017)... Fairfax, VA (PRWEB) , ... October 13, 2017 ... ... provider of DevOps and Agile Software Development, has been awarded a contract by ... (EATS) Blanket Purchase Agreement (BPA) aims to accelerate the enterprise use of Agile ...
Breaking Medicine News(10 mins):
(Date:9/28/2017)... , Sept. 28, 2017 Hill-Rom Holdings, Inc. ... earnings conference call and webcast on Friday, November 3, ... (EDT) and ending at approximately 8:30 a.m. (CDT) / ... the company,s 2017 financial performance and guidance for 2018, ... initiatives to enhance operational performance, and long-range financial outlook ...
(Date:9/27/2017)...  Commended for their devotion to personalized service, SMP Pharmacy ... one in the South Florida Business Journal,s 50 Fastest-Growing Companies, ... list, the national specialty pharmacy has found its niche.  To ... soon be honored by SFBJ as the 2017 Power Leader ... to receive his award in October, Bardisa said of the ...
(Date:9/25/2017)... 25, 2017   Montrium , an industry ... today—from the IQPC Trial Master Files & Inspection ... that EastHORN Clinical Services has selected eTMF ... TMF management. EastHORN, a leading European contract research ... increase transparency to enable greater collaboration with sponsors, ...
Breaking Medicine Technology: