The marketplaces created under the Affordable Care Act allow consumers to select the appropriate coverage for themselves and their families, and encourages insurers to compete on provider networks, prices, and customer service. In 2015, 80 percent selected plans in the two least-expensive tiers (out of four), but significant numbers of consumers did not choose the cheapest plan within each tier. The finding, part of a newreport prepared by researchers at the Urban Institute for the Robert Wood Johnson Foundation, explores the factors which influence consumer plan selection.
The breakdown indicates that the majority of consumers were highly sensitive to monthly premium costs when selecting a plan. At the same time, the fact that a significant minority chose more expensive plans suggests that other factors like existing customer satisfaction, perceived quality differences, brand name recognition, and other concerns also influence consumer choice.
The report draws on plan selection data released from state marketplaces in California, Rhode Island, New York, Connecticut, and Maryland.
"Most, but not all, consumers are choosing marketplace plans based on price, with higher priced-plans attracting a minority who prefer broader networks or more expensive providers," said Kathy Hempstead, who leads coverage work at the Robert Wood Johnson Foundation. "Some plans that priced low and expanded membership rapidly did not fare well in 2015, but hopefully the market will stabilize over the next few years as buyers and sellers continue to make adjustments."
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If you would like to speak with an expert about the report, please contact Frank Walsh at [email protected] or 504-309-5164.
About the Robert Wood Johnson Foundation
For more than 40 years the Robert Wood Johnson Foundation has worked to improve health and health care. We are working with others to build a national Culture of Health enabling everyone in America to live longer, healthier lives. For more information, visit www.rwjf.org. Follow the Foundation on Twitter at www.rwjf.org/twitter or on Facebook atwww.rwjf.org/facebook.
