Do you understand what’s covered under your health insurance policy? A survey by Policygenius found that 96% of Americans don’t understand their health insurance coverage. The survey of 2,000 Americans found that most of them overestimate their understanding of health insurance concepts. Health insurance is complicated but is something we all need in our lives, and it’s important to understand the basics. However, there are some key health insurance terms that Americans had problems understanding.
Health Insurance Terms
The basic health insurance terms that people had difficulty understanding were deductible, co-pay, co-insurance, and out-of-pocket maximum. Of those individuals surveyed, only 4% actually knew what all of those terms meant. However, most people overestimated their knowledge. Of Millennials (age 25-34), only 36% knew what all four terms meant, while 47% of Baby Boomers (age 55-64) did. Between men and women, there was a slim difference in understanding. 44% of men understood all four terms, while 41% of women did. Men overestimated their knowledge more than women, however.
The survey also revealed that most Americans are not confident in their ability to select the right health plan. This is likely a result of a misunderstanding of basic health insurance terms. It can be difficult to select the right plan if you don’t understand what different plans cover. The results were the same across the country. Roughly a third of Americans are confident that they can select the health plan that is right for them. Overall, 70% of the individuals surveyed were happy with their health care plans. Satisfaction was higher among individuals with employer-provided plans.
Why Does This Matter?
When Open Enrollment comes around in November, millions of people could be looking for new health insurance plans. Overconfidence in your ability to understand the different plans can be dangerous. If you don’t understand what a deductible is or what your out-of-pocket maximum is, you could end up with a health insurance plan that is outside of your budget. People need to be educated on important insurance terms so that they can wisely select the right plan for them.
Contact an Injury Attorney
If you’ve been injured and have questions about your insurance policy, you should consult with an experienced attorney. Gregg Goldfarb has been helping the injured for over 20 years. Contact us online or call us at 305-374-7000 to schedule a free consultation.