Let’s play a game that combines two of everyone’s favorite things: health insurance and vocabulary tests.
Here we go. A formulary is: a) The document that your insurance company needs in order to pay your medical bill; b) The term for the consent from your insurance company that they’ll cover a given procedure; or c) The list of all the prescription drugs covered under your plan.
If you answered c), you’re correct—and in the minority. In a survey on health-insurance knowledge released today by the Kaiser Family Foundation, roughly one-third of Americans knew the answer, including just 21 percent of respondents without insurance.
With just a few days to go before the next found of open enrollment on Healthcare.gov (signups begin on Saturday), the survey found that many uninsured people still don’t understand basic health-insurance terms: Roughly 40 percent were unable to define terms like “provider network” or “out-of-pocket limit,” and even fewer were able to calculate how much they’d have to pay in scenarios describing the cost-sharing details of hypothetical health plans.
Not that the insured are immune to the confusion, either: Overall, just 4 percent of respondents were able to answer all 10 survey questions correctly.