Medicaid Consumers and Informed Decisionmaking

In 2006, Florida’s Medicaid reform required
some Medicaid consumers to enroll
in health plans that differed in terms of
cost­sharing requirements and benefit limitations.
In focus groups we found enthusiasm
among Medicaid consumers for having
choices among health plans; however, enthusiasm
did not translate into comparison
shopping for health plans. Survey findings
suggested that Medicaid consumers had
difficulty comprehending Medicaid healthplan
comparison information, particularly
if they were lower in numeracy or literacy
skills. Given the number of plans offered
and the numerous ways they differed, our
efforts to simplify the comparison chart
resulted in slightly higher comprehension,
but only among those with higher skill
levels. Our study suggests that policymakers
should seek to simplify Medicaid Program
information and design to encourage
informed decisionmaking.