FUZZY MULTIATTRIBUTE CONSUMER CHOICE AMONG HEALTH INSURANCE OPTIONS

Author:

KAHRAMAN Cengiz1,SUDER Asli1,TURANOGLU BEKAR Ebru1

Affiliation:

1. Istanbul Technical University

Abstract

People buy insurance to protect themselves against possible financial loss in the future. Health insurance provides protection against the possibility of financial loss due to health care use. A selection among health insurance options is a multiattribute decision making problem including many conflicting criteria. This problem can be better solved using the fuzzy set theory since human decision making is generally based on vague and linguistic data. We propose an integrated methodology composed of fuzzy AHP and fuzzy TOPSIS to select the best health insurance option. The considered option types, Health Savings Account (HSA), Flexible Spending Accounts (FSA), and Health Reimbursement Arrangement (HRA) are evaluated using eight different criteria under fuzziness. A sensitivity analysis is also realized.

Publisher

Vilnius Gediminas Technical University

Subject

Finance

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