Basics training: insurance terms and tools worth knowing
A health plan becomes more valuable when employees feel confident using it. From choosing coverage to planning for a doctor’s visit or filling a prescription, each decision is easier when terms such as deductible, copay, coinsurance and prior authorization make sense. National research highlights the opportunity to build that confidence: According to KFF, nearly half of insured adults report difficulty understanding at least some aspects of their health insurance. Another KFF analysis found that 34% of people with employer-sponsored coverage have difficulty understanding what they’ll pay out of pocket when using their benefits.
That knowledge gap creates an opportunity for employers. Helping employees better understand their benefits is one of the simplest ways to add value to the health plan you already provide. When employees understand how their coverage works, they’re better equipped to make informed healthcare decisions, use available resources and get more from their benefits. Greater health insurance literacy can also support more effective use of preventive care, wellness programs and other health plan resources that contribute to better health outcomes and help manage costs over time.
The good news is that you don’t need a large HR department or internal communications team to provide that education. Arkansas Blue Cross and Blue Shield offers free, ready-to-share resources that explain health insurance concepts in plain language and help employees and their families build confidence using their coverage.
One of the most comprehensive resources available through our Employer Toolkit is the Guide to Understanding Health Insurance. The guide walks employees through many of the concepts they encounter when choosing and using coverage, including premiums, copays, deductibles, coinsurance, out-of-pocket maximums, pharmacy benefits, formularies, explanation of benefits (EOBs) and health savings accounts. It and other resources are available in English and Spanish. Share the link to the guide or the downloadable PDF.
Designed for everyday consumers rather than insurance experts, the guide breaks down complex topics into easy-to-understand explanations and practical examples. It helps employees better understand not only what their benefits cover, but also how to use those benefits effectively throughout the year.
The Employer Toolkit also includes additional health insurance literacy resources, including flyers, booklets, videos and other educational materials that are free to download and distribute. Whether you share information through email, onboarding materials, in the breakroom or employee meetings, these resources make benefits education easy to incorporate throughout the year.
Providing benefits is a significant investment in your workforce. Helping employees understand those benefits may be one of the easiest ways to increase the value of that investment.
For shareable resources employees value, visit the Health Basics section of the Employer Toolkit to download the Guide to Understanding Health Insurance (find the Spanish-language version here) and other free educational materials for your employees and their families.