Statistics on Understanding Healthcare

Recent research indicates that individuals don’t understand the very basics of their healthcare insurance. This survey was a telephone survey of over a thousand adults to see how much they understood about healthcare insurance. Only half of respondents were sure how much they paid for their monthly healthcare insurance premium or their annual deductable. Less than a quarter understood the terminology in their insurance policy with even basic terms proving difficult. Only 36 percent understood what an HMO was and only 20 percent understood what a PPO meant.

"It's clear Americans lack a basic understanding of health insurance terms, which may prevent them from selecting the health plan best suited to their individual needs," said Sam Gibbs, senior vice president of eHealth, Inc. "But as costs increase and responsibility for coverage shifts to the individual, these terms are becoming increasingly relevant to consumers' daily lives and their well-being."

In the study, only 71 percent knew their healthcare insurance plan’s copayment. Sixty percent knew their deductible. Even though PPOs are the most common type of insurance used by employers, only 20 percent knew what PPO stood for. While women were the decision-makers when it came to healthcare, a total of 10 percent admitted to having no idea what the terminology in their healthcare policy meant.

The solution? Some ideas include side-by-side comparison of policies or having live assistants with questions at the time the plan is signed up for. A glossary of healthcare insurance terms would also be helpful.

As it turns out, many Americans are comfortable seeking online assistance with healthcare insurance decisions. Enter sites like ehealthinsurance.com which will offer side-by-side comparisons and advice to those making healthcare decisions. Sites like these are best for those who are looking for personal insurance plans but are good sources for healthcare insurance information for anyone.