The FINANCIAL — Large majorities of the public, including the uninsured Americans who are supposed to use the health insurance exchanges do not know how the exchanges will operate or how they should use them.
They think the exchanges will be difficult to understand and that the insurance they provide will be expensive. Furthermore, only one third of those who are now uninsured expect that they will buy insurance rather than pay the penalty for being uninsured, while over half of them are unsure what they will do, according to a new Harris Poll of a nationwide cross-section of 2,044 adults (including 340 who are currently uninsured).
Only 9% of the public report that they are extremely or very familiar with the term health insurance exchange, while another 21% are somewhat familiar. Fully 70 % are not at all or not very familiar with it. Those without health insurance are even less familiar (with 73% not at all or not very familiar).
Those who have insurance today would be more likely to buy on the Exchange than those currently without coverage, according to the report.
When asked what they would do if their employer did not provide insurance, over half (59%) of those with employer-provided coverage say that they would purchase insurance through the exchanges (as opposed to paying a penalty).
The numbers are similar for those already buying insurance on the Individual market, with over half (52%) anticipating they will purchase health insurance through the exchange.
However, only one-third (33%) of those who are currently uninsured said they would do so, with over half (54%) not sure and more than one in ten (13%) who say they would just pay the penalty.
Further evidence of how unprepared most people are to use the exchanges is provided by those who agree with the following statements: 71% of all adults, and 70% of the uninsured, believe health insurance exchanges will be difficult to understand (and, in reply to another question, only 7% of the public think it will be very easy to understand). 74% of adults, and 72% of the uninsured, believe that health insurance purchased through an exchange will be expensive (and, in reply to another question, 32% of all adults and 34% of the uninsured think that it will be very expensive).
However, on a more positive note, about half of both Americans overall (49%) and the uninsured specifically (53%), believe that they will be able to find a health plan on an exchange that will meet their needs at a reasonable price, according to Harris Interactive Inc.
There is a perceived positive impact of the "navigators" who are intended to help people find health plans and sign up for them. Most people, when asked about them, think they would be very (27%) or somewhat (40%) helpful, as do similar proportions of the uninsured (29% and 41%, respectively).
"As health insurance exchanges go live, consumers will have the opportunity to evaluate and select the health insurance plan and benefits that best fit their medical needs and wallet," said Debra Richman, Senior Vice President, Healthcare Strategy, and Co-Chair of Strategic Health Perspectives. "These findings suggest that unless knowledge and understanding of the exchanges begin to grow, particularly among those who aren't covered today, some of consumers may be slow to utilize them. Health insurers must first understand these new individual customers and work to close the huge consumer education gap," Richman added.
"We see a fairly high percentage of Americans that actually believe the exchanges will enable them to find affordable health insurance that will meet their needs. This offers health plans a strong opportunity to engage consumers. The key to a plan's success will be the ability to address consumers' exchange familiarity and also understand the important differences in consumer preferences and purchasing behaviors," Richman added.
