Survey data confirms that Americans are deeply worried about increases in out-of-pocket expenses for healthcare, and that they have little confidence in making healthcare decisions.
Just as health plans are gearing up for open enrollment and the opportunity to woo new customers, consumers are struggling to understand their options and worried about how to pay high deductibles and other out-of-pocket expenses, research suggests.
The "Moments of Truth" research report from Alegeus is derived from a survey of more than 4,000 U.S. healthcare consumers. It confirms that Americans are deeply worried about increases in out-of -pocket expenses for healthcare, with 66% of consumers saying that "planning for out-of-pocket costs" was the most challenging and stressful aspect of managing their healthcare.
High Deductibles are Here to Stay. Here's Why That's OK.
Respondents also said they had little confidence in making healthcare decisions, with 69% saying that deciphering healthcare jargon is a significant barrier to decision-making.
Forty-nine percent of consumers said they don't understand the cost implications of different health plan choices.
The report also indicates that consumers value human interaction above all other types of support, at least until they become more familiar with their health plan options. As consumers build confidence, their interest in human support declines and their interest in digital tools and self-service support grows.
Consumers have been conditioned to disengage from healthcare decisions by years of having insurance coverage that paid for most healthcare costs and having what are now viewed as relatively small deductibles, the report says.
Low Healthcare Literacy Means High Costs for Health Plans
Now they have to take a more active role and make decisions beyond just selecting a health plan, and many are not ready. They are trying to learn about an industry that seems to have its own language and which demands that many decisions be made, some with potentially significant financial consequences.
Forty-four percent of respondents said "making savings and investment decisions" was challenging or extremely challenging, and 41% had the same view of "understanding and managing my benefit accounts."
Thirty-six percent found "knowing what type of expenses are eligible for my benefit account" to be challenging or extremely challenging, and 34% felt that way ab out "using payment and reimbursement tools."
The report says the research "affirms that consumers feel the impact of the consumerism movement in healthcare and they are struggling to manage their increased financial responsibility."
It also says the survey "clearly signals the need for significant education, tools, and support that engages and empowers consumers to take ownership and make savvier healthcare decisions."
The survey results come as the Centers for Medicare & Medicaid Services launched a new campaign to enroll young adults, which is viewed as vital to the success of the health insurance marketplaces.
How Real is Healthcare Consumerism?
The campaign is focusing on educating young people about their options, especially since nine out of 10 marketplace-eligible young adults without health insurance have incomes that would make them eligible for tax credits.
As CMS works with other federal agencies and private partners to enroll young adults, the 11 million Americans who already receive health insurance from an ACA exchange are bracing for expected premium increases and less coverage, brought partly by the exit of the insurance giants Aetna and Humana from the ACA marketplace.