What's Happening?
Corporate Synergies, an employee benefits resource company, has identified a significant gap in health insurance literacy among employees, which is affecting the return on investment for employers. Despite
substantial investments in health benefits, many employees struggle to understand their coverage, leading to underutilization of preventive care and overutilization of emergency services. This lack of understanding results in inflated claims costs and lost productivity. The company emphasizes that employees often view benefits in isolation, missing out on comprehensive packages that include voluntary offerings like hospital indemnity and legal services. This misconception leads to higher healthcare spending and impacts future premium renewals.
Why It's Important?
The gap in health insurance literacy has broader implications for U.S. employers and employees. Employers face increased costs due to inefficient use of health benefits, which can affect their financial stability and competitiveness. Employees who do not fully understand their benefits may experience higher out-of-pocket costs and stress, impacting their overall well-being and productivity. Addressing this literacy gap is crucial for maximizing the value of health benefits investments and improving employee engagement. By enhancing benefits education, employers can foster a healthier workforce and potentially reduce healthcare costs, benefiting both the company and its employees.
What's Next?
Corporate Synergies suggests that employers should implement year-round benefits education rather than limiting it to open enrollment periods. This approach includes creating touchpoints throughout the year, such as lunch-and-learns and all-staff sessions, to ensure employees have ongoing access to information. Employers are encouraged to use a combination of digital tools and personal guidance to cater to different learning styles, thereby increasing engagement and understanding. By proactively planning education sessions and utilizing utilization data to measure success, employers can improve health insurance literacy and optimize their benefits strategy.
Beyond the Headlines
The issue of health insurance literacy also touches on cultural and generational differences among employees. Tailoring education efforts to be culturally competent and using plain language can help bridge the gap for non-native English speakers and younger employees unfamiliar with insurance terms. This approach not only enhances understanding but also promotes inclusivity and equity within the workplace, ensuring all employees can effectively navigate their health benefits.
