Americans lack a basic understanding of the terminology that is used to describe their own health insurance coverage, a new survey has found.
The results of the survey indicate that because Americans lack understanding concerning health insurance, they may choose a health plan that does not optimally fit their individual needs.
The survey was conducted by eHealth Inc., the parent company of eHealth Insurance, and involved interviews with 1,010 U.S. adults by phone last November. Respondents were asked to rate their understanding of health insurance terms and their own policy.
The survey found the following:
• Fewer than one out of four respondents (23 percent) reported that they were very sure of what the terminology used in their health insurance policy actually means
• Even basic terms proved difficult, with few respondents reporting an understanding the meaning of widely used acronyms such as HMO (36 percent), PPO (20 percent) or HSA (11 percent)
• While PPO coverage is the most common type of health insurance offered by U.S. employers, only 20 percent of respondents know that PPO stands for preferred provider organization.
"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. "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."
The survey also asked respondents to identify what they would have to do to increase their understanding of health insurance terms and their policy. Respondents most frequently cited side-by-side comparisons of policies (71 percent), live assistance with questions and a glossary of health insurance terms (57 percent) as being the most useful aids in increasing their understanding.
The survey indicated that Americans are comfortable seeking information about health coverage online, with more than a third (37 percent) saying they would use the Internet for information about health insurance if they couldn't get assistance from an employer or government program.