Americans lack basic health insurance literacy
Facts at your Fingertips
By Emily Margosian, Assistant Editor, March 1, 2023
A recent Forbes Advisor survey of 2,000 Americans who have health insurance found that while most policyholders report they’re happy with their coverage, many don’t understand it. According to the survey, over three-quarters of participants were unable to identify the term “coinsurance,” and nearly half incorrectly defined “copayment” and “deductible.” The survey also found significant knowledge gaps regarding open enrollment, Health Savings Accounts (HSAs), and medical billing. Many respondents also didn’t fully understand how long they can keep children on health plans (the Affordable Care Act lets parents keep their children on their health plan until they turn 26).
Improving health care literacy has been linked to improved member health outcomes and lower health care spending, particularly among beneficiaries who use more health care services, such as seniors and those with chronic conditions. For a broader picture of Americans’ understanding of health insurance terms, see the graphic below.
