J.D. Power and Associates is reporting overall health planmember satisfaction has declined "significantly," according to thecompany's 2010 U.S. Member Health Insurance Plan Study released thisweek.

The study - now in its fourth year - measures satisfaction amongmembers who purchased their coverage individually or through theiremployer from 133 health plans in 17 regions throughout the U.S.The study examines seven key factors: coverage and benefits;provider choice; information and communication; claims processing;statements; customer service; and approval processes.

According to J.D. Power and Associates, overall membersatisfaction averaged 701 on a 1,000-point scale. This is a slidefrom 712 in 2009 and falls below 2008 levels. Member satisfactionhas declined in all factors except customer service, wheresatisfaction has remained flat, with notable decreases in coverageand benefits and information and communication.

"This significant decline in overall satisfaction is partiallydriven by a lack of members' understanding of their plan's coverageand benefits and how to successfully access them," said JimDougherty, director of the health care practice at J.D. Power andAssociates. "Understanding alone does not explain membersatisfaction, although it may help to mitigate other problems withthe member experience. While satisfaction with many plans hasdeclined this year, satisfaction decreases are less severe forthose plans able to substantially increase memberunderstanding."

However, health plans can create a foundation for a moresatisfying member experience, Dougherty says, by providing new andexisting members with a better understanding of their coverage, andby proactively communicating with subscribers about impendingchanges in benefits, physician or hospital networks or costs.

Overall, members with higher levels of understanding tend to bemore loyal and are better advocates for the health plan. However,according to the study, only four in 10 members say they fullyunderstand their plans.

Health plan members in Pennsylvania, Michigan and New England remain the most satisfied with their health planexperience overall, although the average satisfaction score in eachregion has decreased significantly in 2010, compared with 2009.Member satisfaction in the Illinois-Indiana region remains constant, compared with 2009,moving the region to rank among the regions with the highestsatisfaction scores in 2010.

Member perceptions of health care reform:

Only 10 percent of health plan members say they completelyunderstand the health care reforms, while 57 percent say theypartially understand them. More than one-fourth of members say theydon't understand the reforms at all.

Eleven percent of health plan members say the changes to thehealth care system introduced by health care reform laws willresult in the loss of their current coverage, while 56 percent saythey don't know whether their coverage will be affected.

Forty percent of health plan members say their health carecoverage will be worse as a result of the changes to the healthcare system, while just 9 percent say it will be better.

"The recent health caredebate has demonstrated just how complicated the healthinsurance market can be," said Dougherty. "While the fullimplications of the recent health care reforms will not take effectfor a number of years, it is likely that individual consumers willhave more choices than they have had in the past due to newexchanges and portability. Different segments of the population mayhave widely divergent expectations about the benefits and costs of reform, but onekey constant in elevating satisfaction for all members is forhealth plans to proactively communicate to help subscribers avoidany unpleasant surprises."

Dougherty says plans that focus on building relationshipsthrough member education, communication and reliable, consistentdelivery of health insurance services and that effectively managemember expectations during periods of change will likely have acompetitive edge.

Top Three Plans in Overall Member Satisfaction byRegion

*No other plan in this region performs above the regionaverage.

Arizona-Utah

Highest: SelectHealth

BlueCross BlueShield of Arizona

UnitedHealthcare

California*

Highest: Kaiser Foundation Health Plan

Colorado

Highest: Kaiser Foundation Health Plan

Great-West Healthcare

CIGNA

East South Central

Highest: BlueCross Blue Shield of Alabama

CIGNA

Humana

Florida

Highest: CIGNA (tie)

Highest: UnitedHealthcare (tie)

Blue Cross and Blue Shield of Florida

Heartland

Highest: BlueCross BlueShield of Nebraska

Wellmark BlueCross Blue Shield

BlueCross BlueShield of Kansas City

Illinois-Indiana*

Highest: BlueCross BlueShield of Illinois

Michigan*

Highest: Health Alliance Plan (HAP)

Priority Health

Minnesota-Wisconsin

Highest: Dean Health Plan

HealthPartners

BlueCross BlueShield of Minnesota

New England

Highest: Harvard Pilgrim Health Care

Tufts Associated Health Plans

Blue Cross Blue Shield of Rhode Island

New York-New Jersey

Highest: Independent Health Association

Aetna

BlueCross BlueShield of Western New York and BlueShield ofNortheastern New York

Northwest

Highest: Group Health Cooperative

Providence Health Plan

Kaiser Foundation Health Plan

Ohio

Highest: Humana

Medical Mutual of Ohio

CIGNA

Pennsylvania

Highest: Capital BlueCross

Highmark Blue Cross Blue Shield

Geisinger Health Plan

South Atlantic

Highest: Kaiser Foundation Health Plan

BlueCross BlueShield of North Carolina

UnitedHealthcare

Texas

Highest: Humana

BlueCross BlueShield of Texas

UnitedHealthcare

Virginia-Maryland-D.C.

Highest: Kaiser Foundation Health Plan

Anthem Blue Cross and Blue Shield of Virginia

CareFirst BlueCross BlueShield