Communication About Healthcare Benefits Is Still Broken

There is no simple "hack" for health-benefits communications, but we can borrow some tactics from marketing.

We have some bad news and some good news about healthcare benefits. The bad news is that only four percent of Americans understand basic terms like “deductible,” “copay,” “coinsurance,” and “out-of-pocket maximum,” according to a survey by Policygenius. Respondents were wildly overconfident in their understanding of insurance.

Thus, the good news: Confusion about health insurance literally cannot get (much) worse. Trying to increase employees’ knowledge is almost guaranteed to create better results than carrying on as usual.

While we wish there was some simple “hack” for health-benefits communication, there is not. Instead, let’s borrow some tactics from marketing to help your employees understand their benefits and use them.

A Communications SOS

At present, employees don’t have an appetite to learn about health insurance because it’s an alphabet soup of acronyms: HDHP, CDHP, HSA, HRA, FSA, HMO, PPO, etc. Few employees understand how different plans work or how costs are shared.

The result is that people don’t look for savings or even think there are bargains to be found. If you don’t know about the tax benefits of an HSA, you won’t sign up for one. If you don’t know about the cost differences between emergency care and urgent care, you’ll spend $1,000 or more at the emergency room instead of $150 at urgent care.

We’re all complicit in this situation. Employees don’t care to Google all the jargon and acronyms. The insurance industry has done a spectacular job of making everything unintelligible to consumers. HR’s open-enrollment seminars and brochures can often be boring, confusing, and ineffective. We all need to simplify our communications. A not-so-funny example is that some employees are surprised to find out there’s a high deductible on their company’s HDHP. Perhaps simply calling it by its full name, a “high-deductible health plan,” rather than its acronym, will eliminate the element of surprise.

Moments That Matter

One approach to healthcare-benefits communication has achieved results: tapping into “moments that matter.” It is a way to make healthcare information relevant, but it has limitations.

Moments that matter are the transformational events in life: marriage, pregnancy, childbirth, divorce, getting a job, losing a job, etc. HR platforms have started to create healthcare content for these events.

For example, an employee becomes pregnant but doesn’t want to announce it at work or tell HR just yet. Thankfully, HR built a web portal for maternity leave, where this employee can get her questions answered about benefits, scheduling time off, adding her newborn to insurance, and so forth.

The trouble is that most healthcare situations aren’t moments that matter. If an employee breaks a collarbone skiing and needs a second opinion about surgery, the first thought won’t be, “Oh, I’d better check our company’s healthcare portal!” Chances are, he or she won’t know about the second-opinion program. Something needs to be done about that.

Borrowing a Play from Marketers

Twenty-first century marketers have accepted that people are perpetually distracted, overloaded with information, and skeptical of anyone who wastes their time delivering even more information. So they run campaigns to overcome the clutter. That’s what HR should do too.

Whereas an enrollment seminar is an event, a campaign is ongoing. It hammers home the message that employees can save a lot of money by learning. It’s shamelessly self-promotional and willing to use interest-piquing subject lines and rich media to get attention.

The campaign does a little bit at a time, all the time. One open enrollment email blast might share an infographic comparing the plan options and describe what employees would pay for three specific procedures under each plan. Another email could plug telemedicine in a video and discuss when to use it. Maybe another showcases an employee who saved $3,000 in out-of-pocket expenses by using the corporate programs.

Unlike marketers, you don’t have to worry about unsubscribes. That doesn’t mean people won’t ignore or trash your emails, though, so you need to keep everything short, relevant, and useful.

Finding Context

Marketers must find a context other than “Hey, buy this so we can make money,” which is why they use seasonal events to drive traffic. Think of President’s Day sales or back-to-school campaigns. HR departments also need context when sharing health-benefits information.

Winter on the horizon? How about reminding employees about the beginning of flu season and showing the nearby clinics with the lowest price, as revealed by your nifty price comparison app. Or you can remind employees of what to do if they got sick while out of town, away from the healthcare network.

There are opportunities to pick up on the news cycle too. When Zika virus was in the news every day, that was an opportunity to educate people about their health benefits. Similarly, if legislators change the Affordable Care Act, that will be a key time to discuss current benefits and how they might change.

What’s Working?

As we said, the state of communication in health benefits can’t get much worse. If you use a communication platform to run your campaigns, you’ll get data back. And like marketers, you can adjust your messaging and campaign strategy if something’s not working.

Be persistent. HR teams work creatively to get employees the best benefits they can, but our target audience is a distracted one. Cutting through the noise could turn our teams into intelligent, engaged consumers of their own healthcare.


Keith Kitani is CEO and co-founder of GuideSpark. He brings over 20 years of digital communications and e-learning expertise to creating, building, and leading GuideSpark as it transforms workplace communications.

Colleen Blake is SVP of People at GuideSpark. She is passionate about helping GuideSpark customers develop outstanding company cultures that enable employees and increase productivity. Blake has extensive experience in HR, marketing, sales, IT, M&A, operations, and professional services. 


From: BenefitsPro