Communicating employee benefits: Addressing health insurance enrollment concerns

Employers invest a lot of money in their employee benefits package in order to both attract and retain top talent while also providing their hardworking staff with the benefits they need. According to MetLife’s 22nd Annual U.S. Employee Benefit Trends Study 2024, the large majority of employers (89%) report that controlling their core benefits spending is an important objective to them. (MetLife). So, it’s easy to see why employers may be frustrated when their employees underutilize their expensive benefits. 

One way to ensure that your employees get the most out of your benefits suite is to ensure that they have a clear understanding of their options regarding their employee health policy. Let’s take a closer look at some common employee concerns about benefits usage and how employers can assist their workforce in overcoming these concerns, particularly during an enrollment period.

Common employee concerns

It’s safe to say that most of your employees desire healthcare coverage, but financial concerns may be holding them back. As a benefits administrator, you should expect to field a lot of questions surrounding uncertainties employees may have about their options, costs, and coverage. If your staff doesn’t come to you with these questions, they need to know that doing so is an option. 

Cost concerns (such as expensive health insurance premiums) are likely one of the main reasons your workers are holding off on enrolling in your health insurance policy. Unfortunately, 45% of employees cited that money concerns are the main cause of poor mental health experienced among workers. 

How to communicate employees benefits

To help ensure your employees aren’t missing out on access to valuable employee benefits that can help them and their dependents live healthy lives, let’s take a look at how you can educate employees on their health insurance options. 

Communicate clearly

Clear communication is the foundation of a successful insurance enrollment period. When communicating employee benefits, you want to provide straightforward information about plans, benefits, and enrollment processes that help reduce confusion. Employees need straightforward, jargon-free explanations of the available health insurance plans, their benefits, and the enrollment procedures. The key is to provide this information in a way that’s easy to understand and accessible to all. Consider breaking down complex insurance terminology and providing comparison charts that highlight key differences between plans.

Finding the right communication pathway is key here. Using multiple communication channels can help you reach a larger group of employees. While some employees may favor email updates, others prefer printed materials or notifications through a mobile app. Offering information in various formats ensures employees can access it in the way they prefer and absorb it at their own speed. 

These are the communication channels that are popular amongst employees in 2024:

• Email: 50% of employees

• Online portal/website: 49% of employees

• Video resources/podcasts: 49% of employees

• Talking with someone in person: 49% of employees

• Social media: 46% of employees

• Discussion with their manager: 38% of employees

(MetLife).

Create education opportunities

Boosting utilization is a key way to enhance employee satisfaction with benefits, which currently ranks the lowest at 55% among all aspects of the employee experience. Two of the best ways to improve benefit utilization is to make sure your employees are aware of the benefits available to them and that they experience positive outcomes after enrollment. 

This is where effective health insurance education can help. Nearly half of employers (46%) report that their employees can learn about benefits by talking to managers, but only 18% of employees believe their managers are ready for those discussions. This gap impacts awareness and usage. 

Millennials and Gen Z often find benefits communications irrelevant and struggle to understand open enrollment details. Generational preferences vary: Baby Boomers like in-person talks, Gen X relies on online resources, Millennials prefer video and podcasts, and Gen Z leans toward social media. Tailoring benefits education to different groups is key, especially for bilingual employees who may need content in both Spanish and English (MetLife).

Give personalized assistance

Every employee’s healthcare needs are different, and personalized assistance can make all the difference during enrollment. Offering one-on-one consultations with benefits specialists, virtually or in person, allows employees to receive tailored advice addressing their unique situations. This is especially helpful for employees with complex healthcare needs or family considerations. 79% of employees desire employee benefits tailored to specific life stages and personal circumstances, and 75% of employees want personalized decision-making support tailored to their mental, physical, and financial needs. Employers should focus on the groups that value personalization the most and those that are least satisfied with the current level of customization available. For example, Hispanic and Black employees (83%) often place more value on personalized benefits than Asian (79%) and White (78%) employees. Meanwhile, Baby Boomers show the least interest in having benefits recommendations tailored to their life stage and needs. (MetLife).

Providing resources such as FAQ documents, plan comparison guides, and decision-support tools can further enhance the employee’s ability to make an informed choice. These tools can help employees evaluate their health needs and compare the various coverage options available to them, ensuring they select the plan that best fits their circumstances.

Speaking of personalized support, you need to go above and beyond to ensure that special cases receive the assistance they need. Certain employees may face unique challenges when selecting insurance, such as those with pre-existing conditions or those who need coverage for family members. Employers should provide additional support in these cases by offering tailored information and assistance. This might include explaining coverage for specific treatments or procedures, outlining dependent coverage options, or walking employees through adding or removing family members from their plans.

Provide feedback mechanisms

Some employees may feel uncomfortable asking for guidance during health insurance enrollment because they may feel they can’t share their concerns about the process. Encourage employees to voice their questions or concerns to create a supportive environment and allow employers to address issues proactively. 

The takeaway

Employers and employees have much to gain by working together to find health insurance solutions. Companies with a healthier workforce are much more likely to see annual revenue growth of 11% or more compared to those with less healthy employees. On the worker side of the equation — 63% of employees report that their current benefits package helps lower their overall stress. (MetLife). If you need help finding the right health insurance solutions for your workforce, sign up for a free demo with Thatch, and we can chat about how to get your and your employees on the path to success.