THE ECONOMICS OF HEALTH INSURANCE COVERAGE LEVELS IN THE U.S.: A PREDICTIVE MODELLING OF POLICYHOLDER PREFERENCES

This study uses a synthetic dataset modelled on the insured U.S. population to examine the determinants influencing the selection of coverage levels of Basic, Standard, and Premium health insurance plans in private markets. Multinomial logistic regression and random forest models were employed to evaluate the impact of demographic, socioeconomic, lifestyle, and clinical variables. The findings reveal that insurance cost is the most decisive factor, with higher premiums steering consumers away from basic plans toward more comprehensive options. Older individuals, those with higher BMI, and those with more children were more likely to choose lower-tier coverage