Peter Martin from The Sydney Morning Herald writes ‘A survey has found only half of all private health insurance customers know with confidence what their policies cover.’ and recent research conducted by the Consumers Health Forum, says only one in four finds it easy to compare policies.
We do not find that surprising. Health insurance policies are complex and difficult to come to terms with. If anything, I am impressed that 75% feel that they do understand exactly what their policies cover. This may not, of course, be a problem if we use the ‘fit for purpose’ guide. Many consumers can very effectively use products they do not understand provided their normal requirements are within the scope of the product. Lots of people barely understand the capabilities, or even limits, of their cars, computers, or telephones without problem so long as their expectations are met they are happy and well provided for.
The question of real concern is when they think that coverage is much greater than it really is. Even looking at straight claims approval rates may not be a good guide to the effectiveness of this understanding – but it is a necessary starting point. Most insurers would rather that clients knew more. They would prefer not to receive a claim for something that they will have to decline. Click here to read the full article.