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A study by Saurabh Bhargava and colleagues at Carnegie Mellon University, involving nearly 24,000 employees at a Fortune 100 company, revealed that 61% selected inappropriate health insurance plans for their needs. The researchers estimated that by choosing different plans, employees could have saved an average of $372 annually, costing them about 2% of their salary. In 2018, over 8% of total household spending in America was on healthcare, a 37% increase since 2004. The complexity of health insurance products impedes individuals from maximizing their welfare, leading to difficulties in decision-making. Understanding these challenges is crucial for improving how Americans choose their plans.