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A study by Saurabh Bhargava and colleagues at Carnegie Mellon University revealed that 61% of nearly 24,000 employees at a Fortune 100 company chose the wrong health insurance plan. This mischoice could have cost them an average of $372 per year, equating to about 2% of their salary. In 2018, health care costs comprised over 8% of total household spending, a 37% increase since 2004. The study suggests that people's difficulty in understanding health insurance options hinders their ability to make beneficial choices. The complexity of these products significantly affects decision-making, raising concerns about how to improve the selection process for Americans.
