Clear communication from insurers could cut operating costs

Health insurers are doing a poor job communicating with senior citizens in the US, and this is causing an increase in operational costs for insurers, according to a report from software company VisibleThread.

The report, titled US Health Insurers Struggle to Communicate with Their Audience, is based on an evaluation of Medicare documents from 30 of the top health insurers.

Their findings show that the reading level required to understand these communications is outside of the recommended level for senior citizens.

Specifically, 86.6 percent of seniors could not readily understand the messaging.

Citing the Mintel North America Consumer Trends 2018, which found that trust dictates where and how consumers spend VisibleThread said that health insurers who communicate clearly create a higher level of trust.

"The results of our report were troubling for both consumers and health insurers,” said Fergal McGovern, CEO, Visible Thread. “Consumers may not fully understand what is and isn't covered. Think about pre-existing conditions. Likewise, insurers are putting themselves at risk of not following the government's legally required plain language standards. When subject matter experts who are not trained writers compose materials, insurers have inadvertently lost sight of what their customers need."

Besides building trust, clear communications also represent cost-savings for insurers, evident in a reduction operational costs such as call center expenditure, VisibleThread said.

"When consumers need to spend less time on the phone with insurers' customer service centres, experience improves and costs for the business drops," said McGovern. "Open enrolment presents an excellent opportunity for health insurers to assess and improve their written communications with members. Clarity helps insurers reduce overhead costs associated with excessive call centre volumes."

VisibleThread also found that 56.6 percent of insurance companies communicate in an academic tone. Two thirds of insurers produce content more difficult to read than Moby Dick, with long sentences twice the recommended level. Only six out of the 30 insurers have an acceptable complex word density.