Employees Are Outside Their Comfort Zone

Forty-three percent of employees participating in the Watson Wyatt survey said understanding what their health plan covers is a top challenge.

In addition, slightly less than half of employees reported being comfortable describing what a co-pay or deductible is. The survey also found that only 36 percent of employees are comfortable describing flexible spending account, and 35 percent can define out-of-pocket maximum. In addition, less than 25 percent are comfortable describing health savings account, coinsurance, and formulary.

"It's hard for employers to ask employees to take more responsibility for their health care when they are not speaking the same language," says Kathryn Yates, global director of communication consulting at Watson Wyatt. "Helping employees improve their health care literacy and learn the terminology can make or break a company's healthcare efforts overall."

Yates cautions against trying to give too much information to employees during open enrollment, however. "You can't just pack it all into a 65-page enrollment kit and expect that to do the trick," she says, adding that benefits communication is a "round-the-clock, round-the-year job."

Instead, the information needs to be presented in an accessible, reader-friendly format to increase the chances that employees will actually read the information. Watson Wyatt found that only 52 percent of employees read all of the information they receive during the open enrollment process.

"It's essential to communicate with employees in ways that meet their needs and preferences," Yates says. "By using a mix of channels and formats, employers can effectively increase understanding and empower employees to become smarter healthcare consumers."

For example, about 70 percent of employees prefer to have printed benefit communication materials sent to their home or given to them at work, the survey found. "They still want printed material. That was across the board. Generational differences did not apply," Yates says.

Other preferences include the Internet (64 percent), face-to-face meetings (46 percent), and a conversation with the HR department (43 percent).

Get Back to Benefits Basics

Yates offers the following advice to consider:

Educate employees about healthcare terms. When sending out key benefits communication, include a list of common terms with definitions. Employees need to understand their health plan and the terms used in it to make good healthcare decisions.

Use "push-pull" approaches. "Push out the information they need for open enrollment, but give them ways to access more information," she says.

Continue to provide open enrollment information in print. "Employees prefer to get things in print," Yates says, noting that many workers also prefer to get benefits information via the Internet.

Create a calendar. Don't overload employees with benefits-related information during open enrollment, she says. Educate them throughout the year on such topics as losing weight, completing a health risk assessment, and smoking cessation. "Don't think about it as a once-a-year thing. Think about it as a year-long campaign."