Fear Driving Employee Decisions About Health Care

Fear and anxiety are influencing employees during the decision-making process about health care rather than a rational examination of the marketplace, according to a Towers Perrin (Towers) study.

The Towers survey found that 52 percent feel negatively about their health care coverage and many worry that their health plans fail to provide adequate financial protection, cover needed services or deliver enough value for the cost. While employers are counting on employees to become better health care consumers, these findings bring home an important message–employers need to find new ways to help employees understand their coverage alternatives and gain confidence in navigating the health care system.

This fear causes employees to spend more than necessary. Many believe that paying more means better value. To improve an employees’ understanding and involvement in plan design, clear and specific communication is necessary, focusing on the reasons for rising costs and how much employers are paying to cover employees and their families.

Educating employees is the foundation to encouraging changes in spending habits. An employer probably should start its education campaign six to nine months prior to open enrollment, centering on health care costs, wellness and disease management. As open enrollment approaches, employers should focus more on specific plan features that promote plan savings and offer advantages.

Technology empowers employees to make sophisticated health coverage choices. In fact, the Towers study found 56 percent of employees with technical decision support tools were better consumers of health care than counterparts without these tools (30 percent).

All in all, communication is the key to unlocking the fears surrounding health care. It is the vital ingredient to transform employees into better health care consumers and provide them more confidence about their health care benefits.

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