While GenZers are most engaged in their health care decisions, they're alsoleast likely to understand the costs of care. (Photo:Shutterstock)

For most Americans, health care expenses are still an unwelcomesurprise and burden. A majority of U.S. consumers don't understandvarious aspects of their health care insurance costs, while manyaren't actively planning for the health care expenses, according toHSA Bank's Annual Health and Wealth Index, a survey of2,000 U.S. consumers conducted in the fall of 2019.

Only around 42% of survey respondents were classified as beingat least "highly engaged" with preparing for their health careexpenses and taking an active role in their physical health. Thereis, however, some hope for the future—Generation Z was the mostengaged with health care expenses and their physical health, whilemillennials came in second, followed by Baby Boomers, andGeneration X.

Related: Infographic: What younger generations expect fromhealth care

But Generation Z was also the least educated about the costsinvolved in their health plans. To be sure, all consumers ingeneral struggled to understand the different types of health careexpenses. Only 15% understood their coinsurance costs, for example,while 25% knew about their out-of-pocket maximums, and 37% theirdeductible expenses. Meanwhile, 42% were knowledgeable about theirmonthly premium costs, while 46% also understood their copayexpenses.

Kevin Robertson, senior vice president and chief revenue officerfor HSA Bank explained that the lack of engagement and educationabout health care costs is due the fact that many are not focusedon the issue until they have to be. "It comes down to lack of theincentive to do something about it today, and it's easy to kickthat can down the road."

Engagement and understanding varied depending on the type ofhealth insurance plan one purchased. Consumers with high-deductible health plans, for instance,were the most engaged, while those with Medicare or Medicaid werethe least engaged. Medicare and Medicaid recipients were also theleast informed about their plans cost, while those with traditionalPPO health plans were the most educated.

Aside from education, many consumers across the country couldalso use help with planning for medical expenses when, and after,they retire. The survey found that slightly over one-third ofconsumers in the South and Northeast regions of the U.S rarely savemoney for future medical expenses, while 31 percent in the Midwestand 27% in the West region said the same. What's more, 37% of thoseover the age of 65 rarely save for future health care expenses,while a majority of that age group, 83%, worry about future medicalbills.

Robertson noted that the widespread lack of education andfinancial planning presents opportunities for health insuranceproviders. However, "what it comes down to is a challenge to makeit interesting to people."

He advised that to get people more engaged with health carecosts, insurers should focus on "experiences rather thaneducation."

The most successful efforts, he noted, are when people " are notasking what expenses you want, what out of pocket costs you want…[but] they're saying tell me about your life experiences, how doyou interact [with the health care system]?"

Read more:

• Employees want more help understanding their healthcare coverage
• Consumers more likely to pay hospital bills ifcosts are clear
• What do consumers want from a healthplan?