How Informed Employees Can Lower Your Healthcare Bottom Line

Limited health care literacy impairs employees' ability to make informed health choices

• Many struggle to find information about which medical services their plan covers and how to identify in-network providers
• Over 1/3 skip or postpone necessary health care or medications due to cost
  • Of these, 42% had their medical conditions worsen
• As health care costs are expected to rise at the highest rate in 13 years, strong health care literacy is necessary to enable employees to make informed decisions

Why Health Care Literacy Matters,
And What Employers Can Do About It

Did you know that more than half of Americans struggle to navigate today’s complex healthcare system? In fact, only 4-14% of adults truly understand how health insurance works. This gap in health care literacy isn’t just a statistic, it has a direct impact on health outcomes, employee well-being, and your company’s bottom line.

When employees do not understand their health coverage, they’re more likely to postpone preventive care or delay seeking treatment for medical concerns.  This may lead to employees missing more time at work to address health conditions that could have been managed earlier, or face higher costs to cover the care required for developed complications. Combine this with an aging workforce, and these factors become significant drivers of rising employee health insurance costs.  

The Employer’s Role: Turning Confusion Into Confidence

As an employer, you have the power to bridge this gap. Here’s how you can help your team make sense of their benefits and get the most from your investment:

• Communicate Year-Round: Move beyond open enrollment. Keep simple and easy-to-understand communications flowing year round through newsletters, team meetings, emails, and even paycheck messages.
• Show the Big Picture: Help employees see how their benefits work together and how they support their everyday lives.
• Highlight the Value: Clearly explain “what’s in it for me” so employees appreciate the true value of their benefits.
• Leverage Your Advisor: Work with a benefits advisor who goes beyond the basics, someone who helps you craft effective communication strategies and supports your team’s understanding.

How Improved Healthcare Literacy Changes Claims Outcomes
Boosting healthcare literacy can transform claims results in several ways:

• Increased Preventive Care Utilization: Employees who understand their benefits are more likely to use preventive services, reducing the risk of serious, costly health issues later
• Better Medication Adherence: Understanding coverage details helps employees follow prescribed treatment plans, improving health outcomes and reducing complications
• Cost Savings: The CDC estimates that improving health literacy could prevent nearly 1 million hospital visits annually and save over $25 billion each year

The Bottom Line: Literacy Is an Investment

When employees understand their benefits, they’re empowered to make choices that fit their individual needs. This leads to greater satisfaction, improved health outcomes, and stronger employee retention, all of which benefit your bottom line.

Are you making the most of your benefits investment?

At Koppinger & Associates, we believe that ongoing education and clear communication are key to helping your business and your employees thrive. Healthcare literacy is more than just knowing medical terms, it's about employees having the ability to find, understand, and use information to make informed decisions about their health and benefits.  In the workplace, this means employees not only know what their health insurance covers, but also how to navigate the system, evaluate treatment options, and manage costs. Don't overlook healthcare literacy. Let us show you how we can make a difference for your team.

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