Study: 95% of US Health Insurers Have Negative Trust
New research from predictive insights platform Adoreboard finds that 95% of U.S. health insurers have negative trust scores based on consumer reviews. The analysis suggests that three primary service failures are responsible for 89% of low-trust issues. These failures could result in up to $796.5 million in potential customer churn for each insurer.
- A 2025 Forrester Research report corroborates the Adoreboard findings, revealing that only 54% of existing customers and 25% of non-customers describe health insurers as trustworthy. This widespread distrust is not new, with another survey showing that as of June 2025, health insurance companies were among the least trusted entities in the U.S. healthcare system, alongside pharmaceutical companies. - The most common reasons for claim denials include missing or inaccurate information, services deemed not medically necessary, and lack of prior authorization. In 2023, insurers on the HealthCare.gov marketplace denied an average of 19% of in-network claims, with some insurers denying as many as 54%. - The high potential for customer churn has significant financial implications, as acquiring a new customer can be five to seven times more expensive than retaining an existing one. A 5% increase in customer retention can lead to a profit increase of 25% to 95%. - Trust in health insurers varies significantly by age, with only 35% of Gen Z consumers trusting them to keep personal information secure, compared to 63% of the Silent Generation. - In May 2025, the U.S. Department of Justice filed a complaint against major health insurers Aetna, Elevance Health (formerly Anthem), and Humana, alleging they paid hundreds of millions in illegal kickbacks to brokers for enrolling beneficiaries into their Medicare Advantage plans. - Common types of health care fraud that contribute to systemic distrust include "upcoding" (billing for a more expensive service than provided), "phantom billing" (billing for services never rendered), and billing for medically unnecessary services. - A 2023 KFF survey found that 18% of insured adults had a claim denied in the past year, with the rate being higher for those with private insurance through an employer (21%) or the marketplace (20%) than for those with Medicare (10%) or Medicaid (12%). - Despite high denial rates, consumers rarely appeal. When they do, insurers often uphold their original decision, though a significant percentage of complaints that are escalated do result in the company's position being overturned or a compromised settlement being reached.
