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J Health Econ. 2013 Sep;32(5):850-62. doi: 10.1016/j.jhealeco.2013.04.004. Epub 2013 Jun 26.

Consumers' misunderstanding of health insurance.

Author information

1
Carnegie Mellon University, Social and Decision Sciences, 5000 Forbes Avenue, 319 C Porter Hall, Pittsburgh, PA 15213, United States. Electronic address: gl20@andrew.cmu.edu.

Abstract

We report results from two surveys of representative samples of Americans with private health insurance. The first examines how well Americans understand, and believe they understand, traditional health insurance coverage. The second examines whether those insured under a simplified all-copay insurance plan will be more likely to engage in cost-reducing behaviors relative to those insured under a traditional plan with deductibles and coinsurance, and measures consumer preferences between the two plans. The surveys provide strong evidence that consumers do not understand traditional plans and would better understand a simplified plan, but weaker evidence that a simplified plan would have strong appeal to consumers or change their healthcare choices.

KEYWORDS:

Behavioral economics; D8; I1; Insurance; Simplification

PMID:
23872676
DOI:
10.1016/j.jhealeco.2013.04.004
[Indexed for MEDLINE]

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