Many Americans are looking for the right health insurance plan to save money because they have trouble paying for medical services.
Most Americans struggle to find a health insurance plan that will save them money. According to CNBC, a study of nearly 24,000 employees at a large company in the US found that 61% of them chose the wrong plan for their needs.
Researchers at Carnegie Mellon University, the group that carried out the study, estimate that an employee could save an average of $372 per year if they chose a different plan than their choice.
“The majority of workers choose the more expensive plans, which cost about 2% of their salary,” the study’s authors told CNBC.
This is costing Americans dearly. In 2018, more than 8% of total US household spending was on health care. This is up about 37% from 2004, from 5.9% of total household spending.
According to an October 2021 survey by the Kaiser Family Foundation, 46% of Americans said they would have difficulty paying for their own medical care without insurance.
“People don’t seem to be able to maximize their well-being because they have trouble understanding choices as a determining factor,” said Anya Samek, an associate professor of economics at the Rady School of Management (University of California). San Diego) said.
In each health insurance plan, companies will use jargon to discuss that customers find it difficult to understand. According to Policygenius’ 2020 Health Insurance Insights Survey, only 1 in 3 people can correctly identify the 3 basic terms of health insurance: Premium, copay, and deductible .
“This fundamental lack of understanding contributes to many people’s difficulties when they choose an insurance plan,” says Bhargava.