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How Complex Health-Insurance Benefits Negatively Impact Employees

Confusing Health Insurance Can Negatively Impact Your Team

Employees are arguably the most valuable resources in any company, so it’s important to provide them with the care and support they need to work at their best. Most companies have health insurance benefits available to their employees for this very reason. The trouble is, these benefits can be complicated to navigate—especially during open enrollment—leading to employee dissatisfaction and decreased productivity due to stress and confusion.

This article explains how complex health-insurance benefits negatively impact employees while suggesting some ways you can offer better support and reduce confusion.

Navigating Health Benefits Can Feel Like a Maze
Navigating the healthcare system is rarely straightforward. A recent study from Quantum Health reveals that the vast majority of people experience trouble while trying to receive care, including issues understanding their coverage, locating providers, and dealing with insurance claims.

In fact, fewer than 45% of respondents said it was easy to understand and use their healthcare coverage.

This confusion can easily seep into the workplace and hinder productivity. Most employees feel like they don’t understand their benefits well enough—and therefore don’t understand how to use them effectively. As a result, employees often experience undue stress, leading to lower job performance. This is illustrated in the study’s finding that 60% of all respondents spend work time dealing with their health benefits challenges, averaging 30 minutes per issue.

These issues illuminate the importance of understanding one’s health benefits in order to maintain a healthy, productive workforce.

How Employers Can Help
To keep employee morale high, it’s important to understand employee struggles when it comes to health benefits and explore ways your business can help.

If your company provides employee health insurance, it’s vital you inform employees on how their benefit plan works. Clear communication can help reduce stress, which is good for both you and your employees. It also will likely improve morale by helping employees feel valued and supported by you and your company.

Here are a few best practices you can use to help reduce employee confusion and maximize benefits value:

  • Offer one-on-one meetings to go over benefits plans
  • Provide a group presentation during enrollment season, followed by a Q&A
  • Break down benefits in a digestible format, such as a video
  • Distribute a comprehensive benefits guide
  • Leveraging text messaging can increase employee engagement

Key Takeaway
A healthy employee is a productive employee. However, many companies' health benefits are so complex that employees are not only confused by them, but the stress negatively impacts their job performance.

It’s no longer enough to simply provide excellent health benefits; employers should also take the extra step to educate their employees on what their benefits truly offer. Doing so will help to ensure their workforce can tap into the value provided by the benefits, promote a culture of support that will encourage employees to stay, and mitigate the risk of decreased job performance.

Ready to discuss a benefits communication plan? The experts at Arista are here to help. Contact us to schedule a call so we can help you secure health literacy resources for your team.