Helping Consumers Understand Health Insurance
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.
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.