Employee Benefit News for School, City and County Employers

Report Shows Employees Lack Essential Health Care Knowledge

Written by Adam Kuck | Aug 11, 2023 6:48:07 PM

1.5 minute read

Fewer employees understand how their health care plans work this year than last year, according to the 2023 Healthcare Literacy Report. This confidence is directly linked to overall satisfaction. Ninety percent of employees who were extremely confident in their understanding their plan reported high levels of satisfaction, while only 13-14% of employees with less confidence felt the same. By investing in comprehensive benefits education, employers can reduce healthcare costs and enhance employee satisfaction.

Survey Results

Of more than 1,000 U.S. workers surveyed:

  • 35% taught themselves about insurance terms and processes by going online and reading other materials
  • 46% reached out to family and friends for benefits information
  • 27% said they received information from their Human Resources Department

Knowledge gaps were greatest in the education, retail, and manufacturing industries. Also, generations with more work experience, had a greater understanding of benefits. On average, 80% of baby boomers reported knowing key health care terms (deductible, premium, and copay) compared to 76% of Gen X, 68% of Millennials, and 60% of Gen Z.

 

Employer Takeaway

Employers play an important role in helping employees understand and select their health care benefits. But only 68% of employees found online resources helpful, and less than half found emails helpful compared to one-on-one conversations. Group or one-on-one sessions with Human Resources experts can greatly improve employees' health literacy and increase the likelihood of them supplementing employer-sponsored plan with voluntary or buy-up coverage. Also, employees are more likely to review and add coverage when they are required to reenroll annually. Employers should educate employees on reviewing coverage, comparing costs, and checking bills for inaccuracies to increase confidence and satisfaction. Download the bulletin for more details.

 

Additional Resources

Life and Disability Insurance Glossary