Study finds that young adults are still confused about insurance terminology
Many young consumers are concerned about the cost of health insurance policies, but they are still confused about out-of-pocket expenses, according to a study from the Children’s Hospital of Philadelphia. The study is quite small, with researchers observing 33 young adults between the ages of 19 and 30 as they purchased insurance coverage through HealthCare.gov. The online marketplace has made it easier for consumers to acquire coverage, but they may not have a full understanding of insurance terminology.
Consumers find the cost of insurance coverage as a major disadvantage
Confusion is one of the major issues that many consumers have when it comes to their insurance coverage. The study found that young consumers typically do not understand deductibles and they believe that the financial strain associated with health insurance coverage is a significant disadvantage. According to the survey, 60% of those looking for coverage were already uninsured, but most were in good health and saw little need for insurance coverage.
Small number of people purchased coverage through HealthCare.gov
While many consumers looked for coverage through HealthCare.gov, a very small number of them actually purchased policies through the marketplace. The study found that only eight of the 33 that were observed had purchased a plan through the marketplace, with six of these people purchasing “silver” tier plans that provide a basic degree of coverage at a relatively low cost. Of those that did purchase coverage, satisfaction with the policies they acquired.
Awareness about insurance terminology could help people better understand the health insurance coverage they are interested in
The small size of the study is one of its drawbacks, but similar studies have found that confusion remains one of the major problems that consumers have with health insurance. This confusion can expose them to financial risks and significant out-of-pocket expenses. Among young consumers, this confusion is generally high and can prevent them from purchasing the health insurance coverage they need for their circumstance. Dispelling this confusion is becoming a major factor in promoting adoption of insurance coverage among consumers.