14 stats that highlight the significance of health insurance literacy

Enhancing understanding of benefit plans can increase care utilization and improve health and vitality.

Understanding how health insurance works is more than just a nice-to-have – it’s a critical factor in helping Americans access care, manage costs, and make informed decisions about their health. Yet, many U.S. adults struggle to navigate their benefits, leading to missed opportunities for preventive care and lower satisfaction with their coverage. As employers continue to invest in comprehensive health plans, improving health insurance literacy can unlock greater value for both employees and organizations.

Below are 14 statistics that show the impact of health insurance literacy on benefit engagement and overall health.

Health insurance knowledge correlates to greater confidence in using benefits

1. Only 20% of U.S. adults self-identify as having high health insurance literacy and feel confident in their knowledge to access care. (Source: Cigna Healthcare)
2. More than half of employed Americans (53%) don't feel they are getting the most out of the health insurance options available to them. A similar proportion (54%) don't know the full scope of what their current health insurance offers them. (Source: SHRM)
3. Nearly two-thirds (62%) of employed Americans said they don’t usually change their health insurance selections year over year because it’s too stressful, and nearly half (49%) feel pressure to select the most expensive health insurance option to ensure they have the coverage that they need. (Source: Just Works)

Greater literacy boosts health engagement

1. Those with higher confidence in their insurance knowledge are more likely to be engaged in their health, obtain preventive care, manage chronic conditions effectively, and adhere to prescribed treatments. (Source: Cigna Healthcare)
2. Conversely, those with lower health insurance literacy are more likely to delay or forego care. (Source: Journal of General Internal Medicine)
3. Fifty-three percent of employees said their company has made online resources available to support their health insurance literacy, and 26% said they offer presentations and group sessions on benefit education, with just 24% offering 1-on-1 support. (Source: SHRM)

Better understanding drives higher satisfaction with benefits

1. Three-fourths (75%) of people who understand their employer-provided health benefits are satisfied with them, compared to only 23% of people who don’t understand their benefits. (Source: Cigna Healthcare)
2. More than 9 out of 10 people (94%) with a better understanding of health insurance are satisfied with their health insurance provider, versus 52% of those with limited knowledge. (Source: Cigna Healthcare)

Limited understanding creates confusion around coverage and costs

1. More than one-third (36%) of insured adults said it was difficult for them to understand what services are and are not covered by their health plan. (Source: KFF)
2. Nearly 1 in 4 insured adults (23%) have difficulty finding information about which doctors and hospitals are covered in their health plan network. (Source: KFF)
3. While 75% understand basic insurance terms such as “deductible,” “copay,” and “coinsurance,” 30% have difficulty calculating out-of-pocket costs. (Source: KFF)
4. Roughly 1 in 4 Americans (26%) believe that not understanding their health insurance caused them to have higher medical bills than expected. (Source: Healthcare.com)
5. While 89% of employers report offering mental health coverage, 27% of employees say they lack it – highlighting a perception gap. (Source: Cigna Healthcare)
6. While more than 80% of plan sponsors believe people understand their benefits, two-thirds of individuals say they find it difficult to know which benefits or solutions to use. (Source: Cigna Healthcare)

When people have greater understanding of their health benefits, they can more effectively engage with care services to achieve better health, vitality, and productivity. Employers can consult with their health plans to develop communication tools that can effectively educate their workforce on how to use their health plan benefits.

Authored by Neil Southwell, staff writer, Cigna Healthcare Newsroom. The original article can be found here.