An analysis of data from the Urban Institute's quarterly Health Reform Monitoring Survey by Rice University researchers, focusing specifically on Texas, finds widespread ignorance of basic insurance terms like premium, deductible and copay. About a quarter of all Texas respondents reported a lack of confidence in those most basic terms, with higher percentages for terms like co-insurance and max out-of-pocket.
Not surprisingly, percentages reporting lack of confidence in their understanding of these terms was much higher among the uninsured, the poor or near-poor (under 139% FPL), and Hispanics. The uninsured "no confidence" rates were more than double those of the insured, as were rates for those with incomes under 139% FPL compared to those above that level. Hispanic "no confidence" rates ranged from double to triple those of whites.
While the rates are disturbing the Rice scholars* provide an interesting hypothesis about the knowledge gap between the insured and uninsured:
Not surprisingly, percentages reporting lack of confidence in their understanding of these terms was much higher among the uninsured, the poor or near-poor (under 139% FPL), and Hispanics. The uninsured "no confidence" rates were more than double those of the insured, as were rates for those with incomes under 139% FPL compared to those above that level. Hispanic "no confidence" rates ranged from double to triple those of whites.
While the rates are disturbing the Rice scholars* provide an interesting hypothesis about the knowledge gap between the insured and uninsured:
It is possible that people who do not understand health insurance terminology are less likely to obtain insurance. A more likely explanation is that people who are able to obtain insurance have the opportunity and need to become familiar with the terms.
