- Interactive map included showing health insurance literacy across America.
the staff of the Ridgewood blog
Ridgewood NJ, when it comes to purchasing health insurance, phrases and acronyms such as UCR, POS, or HMO can be complex, and it’s easy to get confused if you’re not certain what you’re covered for. Of course, reading the fine print is one part of the challenge, but understanding it is crucial. Law firm Duffy & Duffy, conducted a survey (3,251 respondents) to establish in which states people are the most and least literate when it comes to health insurance terminology.
The survey discovered that overall, over 1 in 3 (37%) New Jerseyans cannot correctly identify common acronyms or terminology linked to health insurance. This compares to a national average of 41%.
Top 5 states ranked by overall healthcare literacy score result:
- Wyoming: 77%
- Kansas: 73%
- Kentucky: 71%
- Michigan: 67%
- Pennsylvania: 66%
Bottom 5 states ranked by overall healthcare literacy score result:
- Maine: 50%
- North Dakota: 48%
- Rhode Island: 46%
- Arkansas: 45%
- South Carolina: 43%
Duffy & Duffy have created an interactive map so that readers can compare health insurance literacy scores in each state (click on ‘embed’ to host on your own site).
Results revealed:
Respondents were presented with various acronyms and given a choice of 4 answers. When it came to identifying the meaning of ‘UCR’, concerningly, just 14% of New Jerseyans got this answer correct: UCR stands for Usual, Customary and Reasonable. Some thought it stood for Urgent Care and Rehabilitation, while others assumed it meant Urgent Claims Receipt. A minority understood it to mean Ultimate Co-Insurance Rejection. It is described as the amount paid for a medical service in a geographic area based on what providers in the area usually charge for the same or similar medical service.
New Jerseyans were also quizzed on the correct interpretation of the ‘POS’ acronym. 76% knew straight away that POS stands for Point of Service (Plan) – it is a managed-care health insurance plan that provides different benefits for using in-network or out-of-network providers. However, some incorrectly thought it meant Primary Out-of-Network Service, or identified it as Patient Opt-In Self-Insurance. Lastly, a few assumed it meant Policy Opt-Out Solution.
The third question, in which respondents scored highest overall, was to describe the meaning of HMO. 100% of New Jerseyans overwhelmingly knew that HMO stands for Health Maintenance Organization – a medical insurance group that provides health services for a fixed annual fee. A smaller proportion thought that it meant Health Market Overhead or Hospital Malpractice Occurrence. Lastly, a few respondents thought it was Hazardous Medical Option.
