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1 in 4 Americans say lack of health insurance understanding caused them to receive a higher than expected medical bill.
For example, one-half believe that copays count toward deductibles when they generally do not.
Still, 2 in 3 are very or somewhat confident they can choose a health plan that best meets their needs.
Over one-half of Americans say they can’t afford health insurance without employer coverage.
As a result, 3 in 10 stay in jobs they don’t like or take jobs they don’t want for health insurance.
1 in 4 Americans (26%) say lack of health insurance understanding caused them to receive a higher than expected medical bill.
That’s according to a new health insurance literacy survey by HealthCare.com.
The survey highlights bewilderment over a wide range of health insurance terms and how health insurance functions in the United States.
For example, understanding the meaning of “in-network” is crucial to not getting socked by unexpected health insurance bills.
But 4 in 10 respondents (41%) were unable to select the correct option, “See only doctors who are contracted with a carrier associated with your policy,” among four choices describing the meaning of “in-network.”
HealthCare.com polled 1,075 adult Americans under age 65 on June 24, 2022, to assess their knowledge of health insurance plans available to the pre-Medicare population.
Understanding the “copay” is also essential to avoiding surprise medical bills. But our survey shows that one-half (49%) of Americans believe that copays count toward your deductible, which they generally do not.
Meanwhile, only 4 in 10 (41%) respondents correctly believe it true that low deductible health insurance plans start paying out sooner than high deductible plans.
And more than 1 in 5 (22%) incorrectly believe that if they think their medical expenses will be low in the coming year, they should choose a low deductible plan.
The complexity of U.S. health insurance creates numerous hurdles for Americans in getting the most out of their healthcare dollar.
For example, since 2003, federal Health Savings Accounts have offered savings by providing the opportunity to pay medical expenses with pretax dollars.
But two decades on, less than one-half (43%) of respondents are able to correctly identify the above definition, and one in five (22%) are unable to identify a single feature of HSAs out of four listed options.
Aside from mainstream employer health insurance and the Affordable Care Act marketplaces, Americans also have the option to cover their healthcare needs with short-term health insurance.
But over 4 in 10 (43%) are unsure they can enroll in short-term insurance anytime, as is the case.
A decade since its enactment, Americans are also still confused by the Affordable Care Act. Asked whether six statements about the ACA are true, the largest number of respondents (37%) were unsure.
Asked specifically whether the federal government increased or decreased subsidies to buy health insurance during the Covid pandemic, 18% correctly chose “increased,” but another 13% chose “decreased.”
Employer health insurance is the dominant form of health coverage in the U.S., covering over 150 million Americans.
Highlighting the lack of understanding of Affordable Care Act subsidies and options like short-term health insurance, more than one-half of respondents (52%) to our poll say they can’t afford health insurance without employer-sponsored coverage.
Asked why they can’t afford health insurance without employer coverage, 18% say they have pre-existing conditions that wouldn’t be covered. This shows a fundamental misunderstanding of the ACA, which for the first time required insurers to cover individuals with pre-existing conditions.
Meanwhile, 3 in 10 Americans stay in jobs they don’t like or take jobs they don’t want for health insurance. Specifically, 19% say they stayed in a job they don’t like, and 12% say they took a job they didn’t want.
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