Impact Health Systems

Helping Consumers Understand Health Insurance

two people look at medical insurance forms and paperwork together

Issue

Many people find it hard to understand health insurance due to the inherent complexity. Evidence shows they can feel overwhelmed by the choices, are confused by terms such as “deductibles” or “coinsurance,” and find that the choices presented to them are too complex.

Results

Working with Humana, our researchers investigated major consumer misunderstandings about health insurance in order to recommend a behaviorally informed plan. We found that copayments were better understood by consumers than deductibles or coinsurance. Insights from this research were translated into practice in 2013 through the launch of Humana Simplicity, a copayment-only plan in which all health services are grouped into one of 7 categories.

Key Takeaways

14%

Of the participants in the survey were able to answer four multiple choice questions correctly about the four basic components of traditional health insurance design: deductibles, copays, coinsurance and maximum out of pocket costs.
55%

Of people surveyed either strongly preferred or preferred the simplified plan that our researchers devised. The respondents also reported that they would be somewhat more likely to engage in some cost-reducing behaviors (such as going to urgent care instead of the ER) if they were covered by the simplified insurance.

Helping Consumers Understand Health Insurance

Issue

Results

Key Takeaways

Impact Partners

CHIBE Experts

Research Areas

Helping Consumers Understand Health Insurance

Issue

Results

Key Takeaways

Impact Partners

CHIBE Experts

Research Areas

Sign up for our Healthy Nudge Newsletter