More than half of consumers think they really need to know what a health plan drug formulary is, and what, roughly, minimum essential coverage means.
But, in the real world, fewer than half of consumers say they understand those terms, according to analysts at the BlueCross BlueShield Association.
Fewer than a quarter of consumers say they understand other common terms, such as “minimum essential coverage exemption,” the analysts say.
“There is, in some cases, a significant gap between the consumer’s desire to know and the actual understanding of insurance terms,” the analysts warn.
The analysts dissect consumer confusion in a report prepared for regulators at the National Association of Insurance Commissioners (NAIC).
The Consumer Information Subgroup, part of the NAIC wants to help the U.S. Department of Health and Human Services (HHS) revise the rules for the Summary of Benefits and Coverage (SBC) notices and the Uniform Glossary.
Agents and brokers may be able to use the report to improve their own consumer communications.