Survey Indicates Consumers Lack Awareness of Term Health Insurance Benefits - Learning Center

NationsHealthInsurance Survey | 02-18-2015

Survey Indicates Consumers Lack Awareness of Term Health Insurance Benefits

Term Health Insurance Benefits US survey

With the current year enrollment period for Affordable Care Act (ACA) insurance closed to all consumers except for consumers who have had a special life event. Consumers who want to sign up for ACA or Obamacare insurance will have to wait until next year's enrollment period1 to sign up.

Uninsured consumers still have the option for applying for term health insurance, a short term health plan that is available anytime during the year. NationsHealthInsurance conducted a survey to determine consumer awareness of term health insurance products. The survey asked 1,000 adults "Are you aware that term health insurance is an alternative to Obamacare?" Sixty-one percent of respondents answered "no."

Term Health Insurance as an alternative to Obamacare

Respondents from the Lone Star state did not echo the national trend. Sixty-four percent of Texans were aware of term health insurance as an alternative to ACA insurance.

With the large number of respondents in our survey being unaware that term health insurance is an alternative to ACA insurance plans, it is not surprising an independent nationwide survey found only thirty percent of responding adults were aware that term health insurance is less expensive than the cheapest Obamacare plan. When asked how term health insurance premiums compare to ACA plan premiums only three out of ten responded "less expensive." In a NationsHealthInsurance study it was noted on average term health insurance premiums are substantially lower than premiums for bronze level entry plans for Obamacare.

Term Health Insurance premiums versus Entry Level Obamacare Plans premium

Among respondents to the survey women were more likely than men to believe term health insurance premiums cost about the same as entry level ACA plans. The survey showed forty-three percent of women answered "about the same cost" compared to thirty-one percent of men who gave the same answer. Adults from the western states were most likely to believe term health insurance cost more than entry level Obamacare plans; thirty-seven percent from this region of the country responded "more expensive" to the question compared to only twenty-seven percent from the northeast region to answer "more expensive."

Insurance providers offering term health insurance plans must educate consumers about the benefits of term health insurance while promoting the product. This task will require educating consumers about cost, benefits, and a profile of consumers who will benefit the most from a term health plan

Methodology

The NationsHealthInsurance survey was conducted between January 30, 2015 and February 1, 2015, results are based on the answers of the 1,078 adults who responded to the survey questions. Respondents were asked, "Are you aware of term health insurance as an alternative to Obamacare?" Respondents had the option of selecting one of the following two answers: “Yes” or “No.” The answer options were displayed in randomized order across respondents. The survey was displayed within a network of over 100 different news web sites and other content sites. Demographic inference and methodology to acquire survey respondents who approximate national statistics on age, gender, income, and region was performed by Google-administered technology. Race, education, and health insurance status were not examined. Margin of error across survey responses is estimated at +3.2/-3.2.

The second survey’s results are based on responses from 1,097 adults to a nationwide online survey conducted from January 30, 2015 to February 1, 2015. Respondents were asked "How do the premiums of term health insurance compare to the premiums of entry-level Obamacare plans?" Respondents had the option of selecting one of the following three answers: “More expensive,” Less expensive,” or “About the same cost.” The answer options were displayed in randomized order across respondents. The survey was displayed within a network of over 100 different news web sites and other content sites. Demographic inference and methodology to acquire survey respondents who approximate national statistics on age, gender, income, and region was performed by Google-administered technology. Race, education, and health insurance status were not examined. Margin of error across survey responses is estimated at +3.0/-2.7.

  1. See the government’s discussion of Special Enrollment Periods. https://www.healthcare.gov/glossary/special-enrollment-period/ Last accessed February 11, 2015