New Study: Consumers Don’t Understand That Short-term Plans Lack Protections, Benefits

A new study by the Kleimann Communications Group, a nationally recognized research and consumer testing firm, finds that consumers face significant challenges understanding the limitations of short-term, limited duration health plans. The study was commissioned by the consumer representatives to the National Association of Insurance Commissioners (NAIC) and presented at their national meeting in Orlando, Florida. Short-term health plans have been championed by the Trump administration as a cheap alternative to Affordable Care Act coverage.

Through a series of structured interviews with consumers, Kleimann found that:

  • Few consumers initially understood the concept of a short-term plan, and most struggled to understand the plan’s covered benefits and limitations.
  • The federally mandated consumer disclosure went largely unnoticed and was ineffective at reducing consumer confusion.
  • Consumers had low health insurance literacy and significant difficulty understanding the plan’s cost implications.
  • Consumers found the short-term plans’ low premiums to be appealing, but many wanted more comprehensive coverage.

Download the full report, “Testing Consumer Understanding of a Short-term Health Insurance Plan,” here.

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