New Data Reveals Consumers Still Struggle with Healthcare Literacy

Rhea-AI Summary

Optavise released its annual report highlighting significant gaps in healthcare literacy among U.S. employees. Key findings reveal that 62% of respondents do not compare costs before care, with only 10% checking provider network status. The survey, involving 1,055 workers with employer-sponsored health plans, indicated a strong desire for better understanding of healthcare costs and benefits. Notably, 26% of employees reported educational support from employers, up from 22% in 2021. The report emphasizes the need for enhanced health benefits education to empower consumers in making informed healthcare decisions.

Positive

• 26% of employees reported educational support offerings from employers, up from 22% in 2021.
• 53% of respondents noted access to online resources, an increase from 41% in 2021.

Negative

• 62% do not compare costs before receiving care, indicating potential overpayment.
• Only 10% check if their healthcare provider is in-network, a decrease from 25% in 2021.

Third annual report from Optavise (formerly DirectPath) demonstrates why ongoing health benefits education is critical

CARMEL, Ind., July 18, 2022 /PRNewswire/ -- Optavise (formerly known as DirectPath), a one-stop shop for employee benefits programs offering a combination of products, technology, and expert guidance, today released a new report, Healthcare Literacy Takes One Step Forward, Two Steps Back.

The report highlights the need for greater healthcare literacy education as 62% of respondents stated they don't always compare costs before receiving care, which could mean they are overpaying for healthcare services. Only 10% of respondents stated they check whether a medical provider or facility is in-network whenever their health plan changes (down from 25% in 2021). The survey was based on responses from 1,055 U.S. workers with employer-sponsored health insurance.

According to Optavise's new report, employees are very eager to make smarter healthcare decisions and save money. Other key findings include survey respondents wanting to know how to:

• Avoid surprise medical bills (39%)
• Understand how their deductible, copay/coinsurance and out-of-pocket maximum (OOPM) work, and how it impacts their wallet (33%)
• Review an explanation of benefits (EOB) and medical bill for errors (30%)
• Research healthcare costs and why it matters (29%)
• Choose a plan and where to get care (22%)

"From inflation to a greater number of Americans facing medical debt, it is critical that consumers have the information they need to make cost-conscious healthcare decisions," said Kim Buckey, vice president, client services at Optavise. "While new regulations have gone into effect to help curb surprise medical bills, these regulations alone are often not enough to reduce healthcare spending, especially since hospitals may not be in compliance and consumers generally do not know that these regulations exist."

To ensure employees receive the support they need to increase their healthcare literacy and improve their financial wellness, more employers are partnering with benefits educators and digitizing education.  According to the Optavise survey, 26% of polled employees say their employers offered presentations and group sessions with benefits educators and outside resources (up from 22% in 2021), and 24% offered one-on-one conversations with these outside resources (up from 16% in 2021). More than half of respondents (53%) said that their company has made online resources available, up from 41% in 2021—likely due to the shift to remote or hybrid workforces.

"It is encouraging that employees want to increase their healthcare literacy rates to improve their financial situations," added Buckey. "More employers, however, need to rise to the occasion. Employees are demanding more financial wellness support, meaning employers need to offer health benefits education. This is critical for employees to receive accurate, timely and consistent information about how to choose and use their health plans so that they—and the company—are not overspending on healthcare services."

For more information about the report, visit this link.

Methodology
Optavise surveyed 1,055 U.S. workers with employer-sponsored health plans who do not work in the insurance industry.

About Optavise
Optavise is a comprehensive provider of employee benefits solutions that helps employers and their employees maximize their benefits and make better health and financial decisions. We offer a unique combination of expert guidance, voluntary benefits, year-round education, communications and advocacy, and benefits administration technology. A part of the CNO Financial Group (NYSE: CNO) family of brands, Optavise operates nationwide through a network of 10,000 broker partners and more than 600 dedicated agents. We serve nearly 20,000 businesses and employers, ranging from small- and medium-sized businesses to Fortune 100 companies. For more information, visit Optavise.com.

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SOURCE CNO Financial Group

FAQ

What did the Optavise report reveal about healthcare literacy on July 18, 2022?

The report highlighted that 62% of respondents do not compare healthcare costs, and only 10% check for in-network providers.

What percentage of employees received educational support from employers according to the report?

26% of employees reported receiving educational support from their employers, up from 22% in 2021.

How many U.S. workers participated in the Optavise survey?

The survey included 1,055 U.S. workers with employer-sponsored health insurance.

What are employees eager to learn according to the Optavise survey findings?

Employees want to learn how to avoid surprise medical bills, understand deductibles, and review medical bills for errors.

Who is the parent company of Optavise?

Optavise is part of CNO Financial Group, which operates a network of benefits solutions.