Health literacy: A key to cost control and engagement

It’s no longer a matter of if health care costs will increase, but by how much, and how quickly. With the cost trend projected to rise 9% next year, employers are being forced to act. Nearly 80% plan to leverage the RFP process to secure better pricing from current vendors, according to a recent Business Group on Health survey, and 94% say they will only adopt health benefits and programs that can demonstrate measurable value.

As the market shifts from a point-solution mindset focused on individual population needs to one focused on overall costs and broad workforce engagement, benefits advisors must help employers must invest in solutions that deliver proven value and durable engagement.

Engaging the workforce in health care is an ever-present challenge. In my experience leading organizations through a rapidly evolving health care landscape, I’ve seen firsthand how employees are increasingly burdened with the complexities of their health benefits.

The numbers speak for themselves: 61% of Gen Z employees are navigating health insurance on their own, with half reporting feelinging overwhelmed or anxious. Meanwhile, 40% of Millennials say they don’t fully understand their benefits, while 33% of Gen Xers share similar confusion, particularly as they juggle chronic health conditions and rising health care costs. This is troubling, especially considering that misunderstandings about benefits and care can lead to worse health outcomes and higher costs for employees and employers alike.

Central to containing costs and boosting engagement is employee health literacy, the ability to understand and effectively use health-related information. Studies show that individuals with low health literacy are more likely to incur higher medical costs, perhaps because they don’t have enough information or resources to weigh treatment options and make informed decisions. Overcoming these gaps in comprehension and care requires an always-on approach from employers, with health literacy at the core. 

The good news is, employers and their advisors can drive real change by empowering and educating the workforce with the tools and knowledge to navigate and use their benefits effectively. Traditional methods — providing an annual benefits booklet and expecting employees to figure things out on their own — are outdated and insufficient. They won’t get the job done. Instead, employers must act as both health care benefit providers and educators, offering consistent guidance and support that simplifies the complexity of health care.

Strategies for engagement

One of the most effective ways to better engage employees is by offering personalized care and proactive outreach and education. Personalized care doesn’t just mean offering a handful of health plans to suit different needs; it means providing flexible options and tailored communications, resources and guidance that resonate with each employee and ultimately help simplify and enable a holistic health care experience. 

Whether through physical health, mental health, or navigation and advocacy services, employers and their benefits advisors have an opportunity to dramatically improve health outcomes for individuals and families nationwide. 

The power of proactive engagement is proven. In a pilot program with innovative employers, Included Health asked employees every 90 days to share the number of days in the past month when their physical or mental health was “not good” or interfered with work and daily activities (a CDC-validated measure of overall health known as Healthy Days). By simply asking, “How are you doing?”, employers successfully engaged individuals and identified those at risk or in need of clinical intervention. Of the people who completed the survey, 1 in 3 reported 15 or more unhealthy days, and nearly half accepted the opportunity to connect with a clinician. Through this proactive outreach, Included Health connected people with necessary resources such as primary care and mental health services. Those who use a clinical service experience an average of two or more healthy days each month. 

Just like creative, continuous, and thoughtful outreach, the value of providing expanded access to high-quality care is also proven. While telehealth has long been valued as a convenient and accessible solution for urgent care and mental health services (and continues to serve that role), new models like virtual specialty care and virtual primary care are now showing their potential to improve health outcomes and reduce healthcare costs.

A recent three-year study, a collaboration between Included Health and Walmart, explored whether virtual primary care could better engage employees, particularly the 50% of their workforce who did not have a primary care provider. The study found that Walmart associates who used virtual primary care for chronic condition management, mental health screenings, and preventive services experienced better physical and mental health outcomes. They also had fewer emergency room visits and hospital admissions compared to a cohort of their peers. Overall, the total cost of care for the virtual primary care group was 11% lower. 

Every company is a health care company

The truth is, whether they realize it or not, every company is now a health care company. Employers are no longer just responsible for providing a paycheck — they are responsible for fostering their employees’ overall wellbeing, including physical, mental, and financial health. 

This shift means employers and their advisors must also act as navigators within the health care system, ensuring that employees have access to the information and resources they need to make informed decisions. Centering health literacy at the core of a benefits program helps reduce healthcare costs and increases the efficiency of investments in employee well-being, making it a win-win for everyone.

Robin Glass is the president of Included Health.