People who have a strong understanding about health insurance and how it works are more likely to enroll in Medicare Advantage than people who don't, according to a new study.
They are also more likely to select lower-cost plans that also have high Medicare Advantage star ratings (a ranking of plans based on their quality of care and customer service), according to the study that was published in the Journal of American Medicine Association's Network Open.
The study also found that a poor understanding of health insurance leads to high costs for Medicare enrollees or poor-quality coverage choices.
The findings illustrate the importance of doing your research and reaching out to us to help you make a more informed decision about your Medicare options. The findings also drive home the fact that if you don't make informed decisions about your coverage, your pocketbook - and your health - may suffer.
The importance of 'health insurance literacy'
The study looked at "health insurance literacy," a term that describes the level an individual's ability to seek, obtain and understand insurance coverage.
According to the study, people with higher health insurance literacy - particularly, those who engage in annual review and comparison of coverage choices - are the most likely to enroll in low-cost Medicare Advantage plans with high star ratings.
The study found that low health insurance literacy more often resulted in people enrolling in traditional Medicare and/or making poor plan choices, which can hurt their overall health and also result in higher outlays for their medical care.
An earlier study found that Medicare beneficiaries in counties with higher health literacy:
The new study found that:
The main reasons that people choose Medicare Advantage are that:
Choosing the wrong plan can have a negative impact on both your health and your finances.
Even if you do not have high health insurance literacy, you can make a smart choice by calling us to see how a Medicare Advantage plan may benefit you.
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In February 2020, The Friedman Group joined AssuredPartners, the 11th largest insurance brokerage in the U.S. This partnership provides us access to additional capital and a national footprint that enables us to continue to negotiate the most favorable coverage terms and conditions for our clients, and allows us to provide an even broader spectrum of risk management support services.