Optavise, a one-stop-shop for employee benefits programs, combining products, technology, and expert guidance, released its 2023 Healthcare Literacy Report, which found that employers are missing several opportunities, including cost reduction, by not improving their benefits education efforts.
Key findings of the report indicate that employers have an important—and growing—opportunity to educate their workforce about how to effectively choose and use their healthcare coverage.
"Health insurance is important to an individual's physical and financial well-being," said Kim Buckey, vice president, client services. "The more employees understand how their plans work and how their decisions affect their out-of-pocket costs, the more satisfied they will be. Employers have an opportunity to take the lead in increasing healthcare literacy rates among their workforces. By providing consistent, year-round healthcare literacy education, employers can ensure their employees aren't overspending on healthcare, which saves money for all involved."
Benefits dissatisfaction can lead to poor cost management
Compared to last year, fewer respondents report that they are very or extremely confident in understanding how their plan works (68%), down from 71% in 2022, and 35% are taking the time to compare the costs of medical services or prescription drugs before incurring expenses, down from 38% in 2022.
Optavise found that only 35% of employees check on the network status of the provider or facility whenever they need care, which can have a significant impact on the employee's out-of-pocket costs. Also, before receiving care, only 35% of respondents said they compare treatment or service costs. Of those who never compare costs, 67% didn't know that they could, which means that employees—and subsequently employers—are likely overpaying for care.
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