Most Americans do not understand that a provider and doctor are the same or what basic terms such as “premium,” “deductible” or “copayment” mean. According to this survey, 45% do not understand “coinsurance” and 30% do not understand “provider network,” which is why health literacy and patient education need to be at the forefront of every carrier’s consumer checklist.
Buying health insurance is one of the most complex and potentially frustrating purchase decisions people will need to make. Additionally, the fact that many do not understand insurance terms can impact the amount of money one pays for a plan or their out-of-pocket costs, which can end up costing both the member and carrier. Because of this lack of understanding, “In many cases, people look only at the lowest premium costs in selecting a health plan, when, in fact, the out-of-pocket annual expense should be their focus if cost is their primary concern.” – @brucejapsen of Forbes
While carriers attempt to evolve into more consumer-focused brands, they will need to focus on how they are communicating with members. How is content being displayed? Are consumers able to easily locate definitions of insurance terms via a FAQ page or will they be provided with an intuitive tool to expand the average persons insurance vocabulary?
If health plans do not prioritize member education, they run the risk of missing out on cost saving opportunities for their business.
Health Insurance Explained – The YouToons Have It Covered takes a light-hearted approach to explaining and breaking down insurance concepts, such as premiums, deductibles and provider networks.