Health insurance satisfaction hits 10-year low

American consumers are more upset with their health insurance carriers than ever, and some say large mergers could make matters worse

Insurance News

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Customer satisfaction with health insurance providers is worse than ever, tanking to a 10-year low with a score of 69 out of 100, according to a new report from the American Consumer Satisfaction Index.

The score, which fell 1.4% in the past year, falls below that of the airline industry and ties with landline phone providers and the US Postal Service. Only television and Internet service providers scored lower as an industry.

Perhaps surprisingly, the main drivers of dissatisfaction with health insurers are not directly tied to the Affordable Care Act. In fact, people with individual policies tend to be more satisfied with their health insurance companies (71 out of 100) than those with group policies (68 out of 100). That’s thanks to a greater feeling of choice with relation to their insurance plan, says ACSI managing director David VanAmburg.

Instead, consumers point to high premiums, deductibles and copays, as well as slow claims processing, to explain their frustration. Average premiums for employer-sponsored plans have increased 4% in the past year while wages rose by just 1.9%, and workers now pay an average of 18% of the premium for single coverage and 29% for family coverage.

Copays and deductibles are also increasing. The Kaiser Family Foundation reports that nearly seven in 10 workers are subject to a copay for visits with their primary care doctor or specialist in addition to an annual deductible attached to their plan. Deductibles for workers averaged $1,077 this year, up 67% from $646 in 2010.

“There is no area where health insurance companies show outstanding performance,” VanAmburg said. “There’s lots of frustration on the part of consumers.”

The ASCI warned that things may only get worse for the industry if several pending mega-mergers – such as the unions between Humana and Aetna, and Anthem and Cigna – are granted regulatory approval.

“The health insurance industry is in the midst of merger mania among large insurers that could tighten the field if the federal government grants approval,” the report said. “Ongoing consolidation among the big players is not likely to bode well for an industry that is already underwhelming its policyholders, as characterized by low and declining customer satisfaction.”

A spokesperson for America’s Health Insurance Plans, the largest trade group among health insurers, defended the industry.

“Individuals are overwhelmingly satisfied with their coverage and benefits, and health plans continue to work with consumers to make sure they know what benefits are available to them and how they can navigate the health systems,” AHIP said.
 

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