Aetna Research shows consumer confusion over health insuranc
Tuesday, Mar 10,2009, 4:59:58 PM Click:
Copyright: Business Wire
Source: Business Wire
Wordcount: 1024
Business Editors / Health / Medical Writers
HARTFORD, Conn. - (BUSINESS WIRE) - March 9, 2009 - As hundreds of thousands of people lose their jobs each month and the unemployment rate to 8.1 per cent 1, one of the main problems face-off workers and their families is what to do about health. According to a recent survey by Aetna (NYSE: AET), consumers have a low level of awareness and understanding of an important option - the health insurance plans - and also have misperceptions about the cost of COBRA coverage 2.
The survey revealed that 69 percent of consumers had never heard of different health insurance plans or did not know much about them. While general awareness of COBRA plans was higher, 38 percent of respondents said they should pay the same premiums as if they were employed.
In fact, the typical cost of COBRA coverage is 102 percent of the total premium, which is the real cost of the plan and not just the amount of an employee is deducted from his paycheck. Without an employer to contribute a portion of the premium payments in two or more is not unknown for an individual to maintain the same coverage.
"This research has shown that consumers are more aware of COBRA coverage, but do not seem to understand the true costs," said Frank McCauley, head of Aetna Consumer Business Segment. "With more people entering the market for individual health insurance, it is essential that people have a clear understanding of all options available to them."
As most people are accustomed to receive health benefits through their jobs, many are not familiar with the idea of buying health insurance on their own. To help educate consumers about this issue, Aetna has developed new content on the health of your website that gives people the basics of individual health insurance, helps to compare this option with COBRA coverage, and offers advice on how to choose the plan that best fits their needs. Your health plan is a partnership with Aetna and the Financial Planning Association of Health that provides benefits and information on financial planning.
Recent changes COBRA
Under the economic stimulus package, individuals who were laid off (or lose their jobs in May) from 1 September 2008 and December 31, 2009, and who chose COBRA coverage will receive a subsidy of 65 per cent of total COBRA premium for up to nine months.
These changes are a temporary solution and will COBRA coverage more affordable for eligible consumers. However, even with this subsidy, the consumer has always May be able to find insurance plans individual health that are less expensive and better suited to their budget.
"In some cases, COBRA is the best alternative for an individual and his family, and we encourage consumers who are in this predicament to register first to have a" safety net "because they are generally eligible to register for this coverage within two months or lose their own coverage, "said McCauley. "However, it is important for consumers in search of individual health plans, which can offer a solution to affordable health insurance - especially something important to consider, after the loss of a job."
The survey also showed that 51 percent of people did not know they could apply for coverage for individual health insurance while they were active on a COBRA plan.
Aetna Options
In addition to providing this new content, Aetna offers a broad range of individual choices that allow consumers to choose the coverage and premium levels that best fit their specific needs. The Aetna Advantage Plan 3 designs PPO-style plans high deductible health plans compatible with health savings accounts, prevention and hospital that combine coverage for preventive care for catastrophic coverage for services such as care inpatient and outpatient surgery, and an optional dental PPO plan.
Each Aetna Advantage Plan is also available on a single child, so that parents can obtain health coverage for their children, even if no other family members are part of the plan. An optional dental PPO plan is also available next to one of these plans.
Aetna Advantage Plans for individuals and families are currently available in 29 states and Washington, DC 4 more information on Aetna plans for individuals and their families is available at www.AetnaIndividual.com or by calling 1-866 -- 582-9629
About the Survey
The results are based on a survey of 290 adults conducted by Aetna Linescale Research. Respondents were classified as more than 18 years and said they have recently become unemployed over the last three months or fear of becoming unemployed in the next three months. All data were collected via an online survey on 16 and December 17, 2008
About Aetna
Aetna is one of the leading diversified companies health care benefits, serving approximately 36.5 million people in the information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of consumer and directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical capabilities health care management and management services for Medicaid plans. Our customers include employer groups, individuals, students, part-time and hourly workers, health plans, government agencies, government-sponsored plans, labor groups and expatriates. For more information, visit www.aetna.com
1 U.S. Department of Labor, Bureau of Labor Statistics Abstract employment situation, in February 2009. http://www.bls.gov/news.release/empsit.nr0.htm Accessed March 9 2009
2 The Consolidated Omnibus Budget Reconciliation Act provides for the continuation of group health coverage that otherwise might be terminated. More information is available at http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html
3 All these plans are medically endorsed, which means that all candidates and their dependents are subject to medical underwriting to determine eligibility and placement in the category of risk.
4 Aetna Advantage Plans are currently being sold directly to consumers or through independent insurance agents and brokers in Alaska, Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wyoming and Washington, DC
This is an information service of Thomson Business Intelligence Service © 2006. This content is only for your personal use, subject to the terms and conditions. No redistribution allowed.
Source: Business Wire
Wordcount: 1024
Business Editors / Health / Medical Writers
HARTFORD, Conn. - (BUSINESS WIRE) - March 9, 2009 - As hundreds of thousands of people lose their jobs each month and the unemployment rate to 8.1 per cent 1, one of the main problems face-off workers and their families is what to do about health. According to a recent survey by Aetna (NYSE: AET), consumers have a low level of awareness and understanding of an important option - the health insurance plans - and also have misperceptions about the cost of COBRA coverage 2.
The survey revealed that 69 percent of consumers had never heard of different health insurance plans or did not know much about them. While general awareness of COBRA plans was higher, 38 percent of respondents said they should pay the same premiums as if they were employed.
In fact, the typical cost of COBRA coverage is 102 percent of the total premium, which is the real cost of the plan and not just the amount of an employee is deducted from his paycheck. Without an employer to contribute a portion of the premium payments in two or more is not unknown for an individual to maintain the same coverage.
"This research has shown that consumers are more aware of COBRA coverage, but do not seem to understand the true costs," said Frank McCauley, head of Aetna Consumer Business Segment. "With more people entering the market for individual health insurance, it is essential that people have a clear understanding of all options available to them."
As most people are accustomed to receive health benefits through their jobs, many are not familiar with the idea of buying health insurance on their own. To help educate consumers about this issue, Aetna has developed new content on the health of your website that gives people the basics of individual health insurance, helps to compare this option with COBRA coverage, and offers advice on how to choose the plan that best fits their needs. Your health plan is a partnership with Aetna and the Financial Planning Association of Health that provides benefits and information on financial planning.
Recent changes COBRA
Under the economic stimulus package, individuals who were laid off (or lose their jobs in May) from 1 September 2008 and December 31, 2009, and who chose COBRA coverage will receive a subsidy of 65 per cent of total COBRA premium for up to nine months.
These changes are a temporary solution and will COBRA coverage more affordable for eligible consumers. However, even with this subsidy, the consumer has always May be able to find insurance plans individual health that are less expensive and better suited to their budget.
"In some cases, COBRA is the best alternative for an individual and his family, and we encourage consumers who are in this predicament to register first to have a" safety net "because they are generally eligible to register for this coverage within two months or lose their own coverage, "said McCauley. "However, it is important for consumers in search of individual health plans, which can offer a solution to affordable health insurance - especially something important to consider, after the loss of a job."
The survey also showed that 51 percent of people did not know they could apply for coverage for individual health insurance while they were active on a COBRA plan.
Aetna Options
In addition to providing this new content, Aetna offers a broad range of individual choices that allow consumers to choose the coverage and premium levels that best fit their specific needs. The Aetna Advantage Plan 3 designs PPO-style plans high deductible health plans compatible with health savings accounts, prevention and hospital that combine coverage for preventive care for catastrophic coverage for services such as care inpatient and outpatient surgery, and an optional dental PPO plan.
Each Aetna Advantage Plan is also available on a single child, so that parents can obtain health coverage for their children, even if no other family members are part of the plan. An optional dental PPO plan is also available next to one of these plans.
Aetna Advantage Plans for individuals and families are currently available in 29 states and Washington, DC 4 more information on Aetna plans for individuals and their families is available at www.AetnaIndividual.com or by calling 1-866 -- 582-9629
About the Survey
The results are based on a survey of 290 adults conducted by Aetna Linescale Research. Respondents were classified as more than 18 years and said they have recently become unemployed over the last three months or fear of becoming unemployed in the next three months. All data were collected via an online survey on 16 and December 17, 2008
About Aetna
Aetna is one of the leading diversified companies health care benefits, serving approximately 36.5 million people in the information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of consumer and directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical capabilities health care management and management services for Medicaid plans. Our customers include employer groups, individuals, students, part-time and hourly workers, health plans, government agencies, government-sponsored plans, labor groups and expatriates. For more information, visit www.aetna.com
1 U.S. Department of Labor, Bureau of Labor Statistics Abstract employment situation, in February 2009. http://www.bls.gov/news.release/empsit.nr0.htm Accessed March 9 2009
2 The Consolidated Omnibus Budget Reconciliation Act provides for the continuation of group health coverage that otherwise might be terminated. More information is available at http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html
3 All these plans are medically endorsed, which means that all candidates and their dependents are subject to medical underwriting to determine eligibility and placement in the category of risk.
4 Aetna Advantage Plans are currently being sold directly to consumers or through independent insurance agents and brokers in Alaska, Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Kansas, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wyoming and Washington, DC
This is an information service of Thomson Business Intelligence Service © 2006. This content is only for your personal use, subject to the terms and conditions. No redistribution allowed.
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