One looming problem for public exchange enrollment under the Patient Protection and Affordable Care Act could be a (very) costly one to consumers.
A study from the Columbia School of Business found that more than 80 percent of consumers unknowingly will choose a higher cost health care plan than they need.
The total bill for these mistakes? $9 billion.
“Consumers’ failure to identify the most appropriate plan has considerable consequences on both their pocketbooks as well as the cost of the overall system,” said Eric Johnson, co-author of the report and co-director of Columbia Business School’s Center for Decision Sciences.
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“If consumers can’t identify the most cost-efficient plan for their needs, the exchanges will fail to produce competitive pressures on health care providers and bring down costs across the board, one of the main advantages of relying upon choice and markets,” Johnson said.
Johnson has advised several state health exchange systems on their designs and structure.