Healthcare consumers are overpaying for their healthcare insurance.
The December 15, 2015 issue of the Journal of the American Medical Association (JAMA), “Choosing a Health Insurance Plan: Complexity and Consequences” explained fundamental problems with healthcare consumers selecting an insurance plan at their open enrollment.
Employees do not know what they doing and make poor health insurance plan decisions.
As previously stated, 14% of the healthcare consumers could not answer four simple questions about deductibles, co-pays, coinsurance and out of pocket max are according to a 2013 survey.
The above JAMA article refers to a 24,000-employee company where “61% of employees chose plans for which no level or pattern of their healthcare spending could justify their choice. These mistakes led to employees overspending an equivalent to 42% of the cost of their yearly insurance premium.” This means when the specific insurance plan that was selected by the consumer was matched with their historical insurance plan utilization and other insurance plan options, the consumer could of selected a plan that cost about 42% less. This is significant since the out of pocket premium cost for the consumer could range from $300 to $600 monthly. This translates into a $1500 to $3000 saving annually.
HEALTHCARE CONSUMERS ARE MAKING DECISIONS DUE TO LACK OF UNDERSTANDING AND PLANNING THAT ARE ADDING TO THEIR HEALTHCARE SPENDING.
The Healthcare Consumer Navigator Center Team has recognized the problem and has developed a guide for healthcare consumers to start planning their healthcare spending and to assist with making the correct decisions. The Personal/Family Healthcare Planner Navigator is found on this web site.
We encourage the consumer to take advantage of the guide.