Private Insurance Happiness: Are People Satisfied?

In the US, health insurance is the primary means of accessing healthcare. A 2019 Gallup poll found that 71% of Americans rate their private health insurance coverage as excellent or good. This is a relatively stable figure, despite attacks on the industry by politicians in the same year. A separate 2019 poll by Hart Research found that 84% of insured consumers are satisfied with their current health insurance plan. However, a 2022 AP-NORC poll revealed that fewer than half of Americans believe that healthcare is handled well in the country. This article will explore the percentage of people who are happy with their private insurance and the factors that influence their satisfaction.

People with private insurance are more concerned about costs than those with government coverage

While many Americans rate their private health insurance highly, those with private insurance are more concerned about costs than those with government coverage.

Private Insurance in the US

Private health insurance is one of the main benefits employees look for when considering a firm’s compensation package. In 2020, 163 million nonelderly Americans, or 60% of the nonelderly population, were covered by employer-sponsored insurance (ESI). While the majority of employees report being extremely or very satisfied with their coverage, many people with private coverage say that costs have prevented them from seeking needed medical care.

Concerns About Cost

A 2019 survey found that 2 in 5 adults covered by ESI reported difficulty affording medical care, prescription drugs, or premiums. Over the past decade, ESI premiums have risen above the rate of inflation and have outpaced wage growth. The rising price of health care, rather than an increase in utilisation, is responsible for approximately two-thirds of per-person medical and pharmacy claims spending growth between 2015 and 2019.

Private Insurance vs Government Coverage

While 71% of Americans rate their private coverage as "excellent" or "good", 82% of Gallup respondents gave Medicare and Medicaid the same rating. However, only 55% of those with private plans are "satisfied" with the total cost they pay for healthcare, compared to 78% of those with Medicare or Medicaid.

Impact of Cost Concerns

Cost concerns have a tangible impact on the health and finances of those with private insurance. A 2019 survey conducted by the Kaiser Family Foundation and the Los Angeles Times found that 33% of people with ESI "put off or postponed" needed care due to cost, and 18% did not fill prescriptions, rationed doses, or skipped doses of medicine. More than one-quarter (27%) of respondents also reported problems with paying medical bills, and those who reported problems with the affordability of care or coverage had taken measures such as cutting back on other spending, taking on more credit card debt, using up savings, borrowing from friends or family, or taking out loans.

71% of Americans rate their private coverage as excellent or good

71% of Americans rate their private coverage as "excellent" or "good"

According to a 2019 Gallup poll, 71% of Americans rate their private health insurance coverage as "excellent" or "good." This percentage has remained fairly consistent over the years, even as some 2020 presidential candidates ramped up their criticism of the private insurance industry. The high ratings for private insurance are especially notable given that these candidates were promoting "Medicare for All" proposals that would have eliminated private coverage.

The Gallup poll also revealed that Americans continue to prefer a healthcare system based on private insurance over a government-run system by a margin of 54% to 42%. Additionally, while private insurance doesn't enjoy as much support as Medicare and Medicaid, which received positive ratings from 82% of respondents, it still receives relatively high marks.

It is worth noting that the level of satisfaction with private insurance may be influenced by other factors such as income, age, and race. For example, the Gallup poll showed that seniors aged 65 and older, who are more likely to qualify for Medicare, gave higher ratings to their healthcare coverage. Similarly, higher-income individuals were more likely to rate their healthcare quality and coverage positively.

Furthermore, a separate study by the Agency for Healthcare Research and Quality found that less than half of Americans (48%) aged 18 and over who had visited a doctor or medical clinic within the year were fully satisfied with their medical care, rating it a 9 or 10 on a scale of 0 to 10. This study also highlighted variations in satisfaction levels based on race and ethnicity, with Asians (31%), American Indians and Alaska Natives (37%), whites (49%), and blacks (46%) giving lower ratings, while Hispanics reported slightly higher satisfaction levels at 43%.

While the majority of Americans express satisfaction with their private insurance, it is important to acknowledge that healthcare costs remain a concern. The Gallup poll indicated that 55% of those with private plans were "satisfied" with the total cost of their healthcare, compared to 78% of those with Medicare or Medicaid. This disparity in cost satisfaction may influence individuals' preferences for government-run healthcare options that could potentially provide more affordable coverage.

In conclusion, while 71% of Americans rate their private insurance coverage as "excellent" or "good," it is essential to consider other factors that may impact satisfaction levels, such as income, age, race, and ethnicity. Additionally, the high cost of healthcare remains a pressing issue for many, shaping the ongoing debate around private insurance versus government-run alternatives.

People with private insurance have more positive views of healthcare quality but less positive views of their coverage than Medicaid and Medicare recipients

While the majority of Americans are satisfied with their health insurance, the percentage of people who report being happy with private insurance varies depending on the specific aspects of the insurance being considered. Overall, 84% of insured consumers say they are satisfied with their current health insurance plan. However, when it comes to specific aspects such as quality and coverage, the views differ between those with private insurance and those with Medicaid and Medicare.

The KFF Survey of Consumer Experiences with Health Insurance also revealed that most insured adults give their health insurance positive ratings, with 81% rating the overall performance as "excellent" or "good." However, people with Medicare gave the most positive ratings, with 91% rating their coverage positively. The survey also found that affordability of premiums and out-of-pocket costs were a concern, particularly for those with private health coverage.

While the percentage of people who are happy with their private insurance varies depending on the specific aspect being considered, it is clear that overall, a majority of Americans are satisfied with their health insurance, including those with private insurance. However, it is worth noting that public satisfaction with the US healthcare system is remarkably low, with fewer than half of Americans saying it is generally handled well.

84% of insured consumers are satisfied with their current health insurance plan

Overview

The percentage of people who are satisfied with their private insurance varies across different surveys and demographic groups. However, overall, a large majority of insured individuals are happy with their private health insurance.

Breakdown by Survey/Source

• A 2019 Hart Research survey found that 84% of insured consumers are satisfied with their current health insurance plan.
• A 2018 Gallup poll showed that 71% of Americans rated their private coverage as "excellent" or "good."
• A 2018 CNN article reported that 82% of Democrats rated the quality of their healthcare as "good" or "excellent," while 71% believed their health care coverage was either "good" or "excellent."
• A 2007 Agency for Healthcare Research and Quality report revealed that only 48% of Americans aged 18 and over who had visited a doctor or medical clinic within the past year rated their healthcare 9 or 10 on a scale of 0 to 10.
• A 2022 AP-NORC Center for Public Affairs Research poll indicated low public satisfaction with the US healthcare system, with fewer than half of Americans saying it is generally handled well.

Breakdown by Demographic Group

• The 2018 Gallup poll showed that 65% of Democrats, 13% of Republicans, and 46% of independents favored a government-run healthcare system.
• The same poll found that 73% of Republicans and 52% of Democrats were satisfied with what they paid for healthcare, with Republicans reporting higher satisfaction.
• The 2018 CNN article mentioned that 82% of Gallup respondents gave Medicare and Medicaid a rating of "excellent" or "good," compared to private insurance, which received lower but still high marks.
• The 2018 Gallup poll also revealed that 51% of privately insured individuals were satisfied with the cost they paid for their healthcare, while 70% of those with Medicaid and Medicare were satisfied.
• The 2007 Agency for Healthcare Research and Quality report showed variations in healthcare quality perceptions based on race and ethnicity. For example, 31% of Asians, 37% of American Indians and Alaska Natives, 49% of White Americans, 46% of Black Americans, and 43% of Hispanics gave their healthcare a rating of 9 or 10.

While the percentage of people reporting happiness with their private insurance varies, the Hart Research survey's finding of 84% satisfaction among insured consumers aligns with other surveys showing a majority of individuals being satisfied with their private insurance. However, it's important to acknowledge that satisfaction levels can differ based on demographic factors and the specific aspects of healthcare being evaluated.

58% of insured adults have experienced a problem with their health insurance in the past year

While the majority of insured adults give their health insurance positive ratings, 58% say they have experienced a problem with their health insurance in the past year. This includes issues with denied claims, provider network problems, and pre-authorisation problems.

The survey conducted by KFF found that people in poorer health were more likely to report problems with their insurance. 67% of adults in fair or poor health experienced issues with their insurance, compared to 56% of adults who described their physical health as at least "good".

The survey also revealed that three-quarters of insured adults who received mental health care in the past year or who used a lot of health care (more than ten provider visits in a year) experienced insurance problems. Furthermore, nearly half of the insured adults who had insurance problems were unable to resolve them satisfactorily, and some even experienced serious consequences as a result.

The types of problems people experienced varied depending on the type of insurance coverage they had. For instance, claims payment issues were more commonly reported by those with private coverage, while provider network issues were more likely to be experienced by adults with Marketplace or Medicaid coverage.

Overall, the KFF survey highlights that while most insured adults rate their health insurance positively, a significant proportion still encounter challenges and difficulties when using their coverage.

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