AIR Index: Health Insurance Literacy in America
Millions of Americans got health coverage this year under the 2010 Affordable Care Act—many for the first time. But consumers who struggle to understand how their insurance works are at risk of forgoing needed care. To understand in which areas Americans need more assistance and education, AIR designed the Health Insurance Literacy Measure survey. In a recent survey of 800 participants, AIR found that young adults, those using fewer healthcare services, traditionally disadvantaged populations, people with lower incomes, and those with less education have more difficulties navigating health insurance.
Likelihood of an American reporting confidence in his or her ability to use health insurance: 3 in 4
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Likelihood of an American to correctly calculate what he or she owes for a routine doctor’s visit: 1 in 5
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Percentage of individuals only “somewhat likely” or “not at all likely” to review a plan’s details before signing up for coverage: 42
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Percentage of individuals likely to check which hospitals and doctors an insurance plan covers: 21
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Percentage of people who know what the insurance term “premium” means: 81
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The term “medically necessary”: 60
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The term “step therapy”: 37
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Portion of individuals who could identify general characteristics of an HMO (health maintenance organization): 1/2
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Of a PPO (preferred provider organization): 1/5
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Percentage of items individuals aged 22–34 answered correctly: 55
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Percentage of items individuals aged 55–64 answered correctly: 64
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Percentage of items correctly answered by individuals with annual incomes of $75,000 or more: 67
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By individuals who earn less than $25,000 a year: 45
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Percentage of items participants with a bachelor’s degree or higher answered correctly: 68
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By participants with less than a high school degree: 32
Source: A Little Knowledge is a Risky Thing: Wide Gap in What People Think They Know About Health Insurance and What They Actually Know (2014)