Insurers' group Web site describes consumer options

The National Assn. of Insurance Commissioners has launched a Web site to improve consumer education about health insurance coverage, which the organization hopes could help reduce administrative hassles down the line for physicians.

The complexity of health insurance options available to consumers and results of a consumer survey it conducted in December 2005 led the Kansas City, Mo.-based industry group to offer information about health, auto, home and life insurance online. "There were surprises in all lines [of insurance businesses] we surveyed [consumers] about," said Scott Holeman, spokesman for NAIC.

For example, the survey found that more than half of respondents from established families did not understand that they had to pay the full cost of their premiums to continue health coverage under COBRA or that the coverage would end after 18 months. It also found that only 12% of older Americans thought they would need long-term care at some point, though some research suggests that figure should be closer to 60%.

The survey also found that 18% of young singles declined employer-sponsored health insurance as a way to save money on the portion of premiums they were asked to contribute.

As a result, NAIC launched the site (link), which organizes information that consumers need according to their point in life: young singles, young families, established families and empty nesters. "The mission of our members -- the state insurance commissioners -- is to protect the consumers and help them make well-informed decisions when they purchase health insurance," Holeman said.

The Web site also could help reduce the hassle factor for doctors. Holeman said. That's because patients who are better educated about insurance will know what their policy covers, making them less likely to ask doctors policy-related questions.

Patients also will learn that discount health cards are not insurance plans, Holeman said. Companies that sell those cards often give the impression that they sell insurance or that doctors have agreed to discount their fees to card holders, something most physicians only learn when those patients show up in their offices.

"Fake insurance is a constant concern," Holeman said. "We hope that by having more educated constituents that it will be beneficial for everyone."