Consumers Weigh In: Choice Matters for Health Coverage

With new customers up one-third over last year, the health insurance industry continues to add policyholders at a rapid pace. According to the federal government, from the November start of enrollment through December 17, nearly six million people signed up for 2016 health insurance coverage on the federal exchanges. Within this group, 2.4 million were new customers.

The ongoing influx of newly insured Americans could put even more downward pressure on policyholder satisfaction next year. At present, customer satisfaction with health insurance has fallen to a 10-year low of 69 on the ACSI’s 0 to 100 scale. This places the industry among the bottom five in the American Customer Satisfaction Index.

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As the health insurance exchanges bring more people into the system, more opportunities open up for things to go wrong. This means that the impact of the Affordable Care Act on satisfaction is yet unclear. What is apparent, however, is that high premiums and slow claims processing do little to help consumer opinions of the industry.

There is a factor that leads to better outcomes for policyholder satisfaction: choice. ACSI data show that customers choosing individual plans are more satisfied on average (71) than those with group health insurance coverage (68). But even among group policyholders, choice plays a role. Those who are offered a choice of group plans rate their experience significantly better (70) than those with no choice (65).

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ACSI Finance and Insurance Report 2015 »

CBS MoneyWatch:  Guess Who Now Ranks With America’s Most Hated Industries »

The Fiscal Times: Americans Give Health Insurers a Big Thumbs Down »

MarketWatch: Health insurance satisfaction at a 10-Year Low (But Don’t Blame Obamacare) »