Perceptions In New York State Of Health Insurance Premiums. Submitted to: Excellus Blue Cross Blue Shield

Transcription

1 ZOGBY INTERNATIONAL Perceptions In New York State Of Health Insurance Premiums Submitted to: Excellus Blue Cross Blue Shield Submitted by: John Zogby, President and CEO John Bruce, Vice President and Systems Administrator Rebecca Wittman, Vice President and Managing Editor October

2 Table Of Contents Subject Page I. Executive Summary 2 II. Survey Results 3 1. Perception vs. Reality Statewide 3 2. Perception vs. Reality Downstate 4 3. Perception vs. Reality Upstate 4 4. Perception vs. Reality Statewide By Age 5 5. Perception vs. Reality Statewide By Gender 6 6. Perception vs. Reality Statewide By Education 7 III. Methodology and Sample Characteristics 8 IV. Survey Instrument 10 Page 1

3 I. Executive Summary To gauge what privately insured New Yorkers perceive versus know how health insurers spend their premium dollars, conducted a survey with a random sample of 1,049 adults. The survey was conducted from September 27 to October 4, used a tiered screening process, eliminating anyone who lacked private health coverage. Respondents had to currently have either private health coverage or Medicare in combination with private health coverage. Those with Medicaid, Child Health Plus, Family Health Plan, and Healthy New York all government subsidized programs were eliminated; all others continued with the survey. Respondents were then asked a series of questions intended to get them to focus on health care costs with the intention to ask them the focal point of the survey their perceptions of how health insurers spend their premium revenue. Respondents were informed that there were three categories of spending of the full premium dollar: (1) medical benefits, (2) business expenses and (3) net income or profit of the insurer. They were asked to estimate the relative shares of how the premium dollar was spent so that the total added to 100 percent. To compare respondents perceptions with reality on how premiums were spent, Zogby International relied upon aggregate data reported in the 2004 financial filings with the New York State Department of Insurance on more than $30 billion in aggregate premium revenue collected. Percentages were rounded to the nearest whole number. Statewide, on the basis of total premium revenue collected by more than 20 insurers, 85 percent of the premiums paid for medical benefits, 11 percent was used for business expenses or administrative costs by the insurers and the remaining four percent was net income or profit. (Percentages were rounded to the nearest whole number.) On the basis of aggregate data from 15 health plans with a principal customer base in the downstate region and with premium revenues of more than $20.6 billion, the shares of expenses were: 83 percent for medical benefits, 12 percent for business expenses; four percent for net income or profit. (Percentages were rounded to the nearest whole number.) Upstate, on the basis of the region s six largest health plans with $9.6 billion in aggregate premiums, 88 percent of the premium revenue paid for medical benefits, 9 percent was used for business expenses by the insurers and the remaining three percent was net income. (Percentages were rounded to the nearest whole number.) Page 2

4 II. Survey Results New York adults across the state who have private health coverage are vastly unaware of how health insurers spend their premium dollars. This observation was consistent across upstate and downstate regions, and there was little relationship between perception accuracy and the respondents age, gender or education levels. The key perception questioned asked was: 8. Health insurance companies use premiums to pay for members medical care, to cover business expenses (like employee salaries, office space and equipment), and in some cases, to generate profits. Please tell me what percentage of the total premium dollars collected by your health plan you think goes for each of these categories. Your total should equal 100%. The following charts illustrate the difference between reality and perception: 1. Average Perception vs. Reality STATEWIDE Page 3

5 2. Average Perception vs. Reality DOWNSTATE 3. Average Perception vs. Reality UPSTATE Page 4

6 4. Average Perception vs. Reality Statewide By Age Medical Costs 90% 85% 80% 70% 60% 50% 50% 48% 54% 58% 40% 30% 20% 10% 0% Reality Statewide Perception Perception Perception Perception 65+ Page 5

7 5. Average Perception vs. Reality Statewide By Gender Medical Costs 90% 80% 85% 70% 60% 50% 40% 30% 20% 10% 0% 53% Reality StatewidePerception Male 49% Perception Female Page 6

8 6. Average Perception vs. Reality Statewide By Education Medical Costs 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Reality Statewide 85% Perception <HS Grad 46% 52% 51% 50% 51% Perception HS Grad Perception Some College Perception College Grad Perception Post Grad Page 7

9 III. Methodology and Sample Characteristics This is a statewide telephone survey of insured adults conducted by Zogby International from September 27, 2005 through October 4, The target sample is 1,049 interviews with approximately 13 questions asked. Samples are randomly drawn from telephone cd s of national listed sample. surveys employ sampling strategies in which selection probabilities are proportional to population size within area codes and exchanges. As many as six calls are made to reach a sampled phone number. Cooperation rates are calculated using one of AAPOR s approved methodologies i and are comparable to other professional public-opinion surveys conducted using similar sampling strategies. ii Weighting by region is used to adjust for non-response. Margin of error is +/- 3.1 percentage points. Margins of error are higher in sub-groups. s sampling and weighting procedures also have been validated through its political polling: more than 95% of the firm s polls have come within 1% of actual election-day outcomes. Page 8

10 Sample Characteristics Frequency Statewide Upstate Downstate Valid Percent* Freq. Valid %* Freq. Sample size 1, Region Statewide Upstate Downstate Age Education Less than high school High school graduate Some college College graduate Post graduate Did not answer education Parent Parent of child under Not parent of child under Marital status Married Single, never married Divorced/widowed/separated Civil union/domestic partnership Gender Male Female * Numbers have been rounded to the nearest percent and might not total 100. Valid %* Page 9

11 IV. Survey Instrument Following is the actual text of the survey instrument: Hello, my name is and I m calling from. We re conducting a brief survey of New York residents about health care and health insurance. May I speak with the person in the household who handles the health plan and health insurance matters? (When you are speaking with the correct person, read the following.) Hello, my name is. We re conducting a brief survey of New York residents to gain a better understanding of people s perceptions about their health care and health insurance. Do you have a few minutes? (Read only if necessary) The study is being conducted for research purposes only. We are not selling anything. We assure you that all of your responses will remain anonymous, and will be combined with the responses of other New York residents, like yourself What is your age? 1. Do you currently have health insurance? 1. Yes 2. No (End) 3. Not sure (Do not read) (End) 2. Do you get your health insurance through a private health insurance company, through Medicare, or through Medicaid? (Read options) 1. Private health insurance company 2. Both Private and Medicare 3. Medicare 4. Medicaid (End) 5. Other/Not sure (Do not read) (End) 3. (ONLY IF Q2 = 3) Do you have any private health insurance in addition to Medicare? 1. Yes 2. No (End) 3. Not sure (Do not read) (End) 4. What is the name of your private health insurance company? (Do not read choices. If respondent names more than one, ask for their primary company.) 1. Aetna 2. BlueCross BlueShield 3. BlueCross BlueShield of Western New York 4. Capital District Physician s Health Plan 5. Child Health Plus (End) 6. CIGNA 7. Empire/Empire BlueCross BlueShield 8. Excellus/Excellus BlueCross BlueShield 9. Family Health Plus (End) 10. GHI 11. Healthy New York (End) Page 10

12 12. HIP (Health Insurance Plan of New York) 13. Independent Health Insurance 14. MVP 15. Preferred Care 16. Prudential 17. United Healthcare 18. Vytra 19. Other (Specify ) 20. Not sure/refuse (End) 5. Who in your family or household is covered by health insurance? (Read choices) 1. Just you 2. Just you and your spouse 3. Just you and your children 4. Your whole family 5. Other (Do not read) 6. Not sure (Do not read) (End) 6. Approximately, how much does your family pay each month toward your health insurance premium? (Round to the nearest whole dollar.) 7. Approximately how much do you think your total health insurance premium cost is per month, combining both the amount that you pay with any amount that your employer or association pays? (Round to the nearest whole dollar.) 8. Health insurance companies use premiums to pay for members medical care, to cover business expenses (like employee salaries, office space and equipment), and in some cases, to generate profits. Please tell me what percentage of the total premium dollars collected by your health plan you think goes for each of these categories. Your total should equal 100%. (Read choices) (Randomize order of categories) 1. Medical care 2. Business expenses of the insurance company 3. Profits of the insurance company 4. Not sure (Do not read) Thanks. We re done. I just need some statistics. 9. Which of the following best describes your highest educational level? 1. Less than H.S. graduate 2. H.S. graduate 3. Some college (AA degree/no degree) 4. College graduate (BA/BS degree) 5. Post graduate (Master s or PhD studies) 0. Refuse (Do not read) 910. Are you a parent or guardian of a child under 17 who is living at home? 1. Yes 2. No 0. Refuse (Do not read) Page 11

13 914. Which of the following best describes your marital status? 1. Married 2. Single, never married 3. Divorced/widowed/separated 4. Civil union/domestic partnership 5. Not sure (Do not read) 0. Refuse (Do not read) 922. Gender (Do not ask, simply record.) 1. Male 2. Female i See COOP4 (p.38) in Standard Definitions: Final Dispositions of Case Codes and Outcome Rates of Surveys. The American Association for Public Opinion Research, (2000). ii Cooperation Tracking Study: April 2003 Update, Jane M. Sheppard and Shelly Haas. The Council for Marketing & Opinion Research (CMOR). Cincinnati, Ohio (2003). Page 12