Early in my career, before I understood the employee benefits industry, I had a situation that completely changed how I think about healthcare decisions.
I remember having a minor issue that could have easily been handled through a primary care visit or urgent care. Instead, I went straight to the emergency room because it felt like the safest and fastest option at the time.
A few weeks later, I received the bill.
What I thought would be a simple visit turned into a significantly higher cost than expected. It wasn’t just the financial impact on me personally; it also contributed to the overall claims experience of the health plan.
At the time, I didn’t realize how big a difference that decision made. I wasn’t trying to misuse my benefits; I just didn’t know there were better, more cost-effective options available.
That experience highlighted something important:
Most employees aren’t making poor decisions on purpose, they’re making uninformed ones.
Once employees understand where to go for care and how different choices impact cost, their behavior naturally starts to shift.
Healthcare costs continue to rise for CSRA employers, and many businesses are searching for ways to control spending without reducing the quality of their benefits.
Most companies focus on plan design, carrier negotiations, or shifting costs through higher deductibles. While those strategies can play a role, one of the most overlooked and cost-effective solutions is much simpler:
Employee education.
When employees don’t understand their benefits, they tend to use healthcare inefficiently. That confusion often leads to unnecessary claims, higher utilization, and ultimately increased costs for the employer.
On the other hand, when employees understand how to use their benefits, they make better decisions — and those decisions directly impact the bottom line.
The Hidden Cost of Confusion
In many organizations, benefits are introduced during open enrollment and then largely forgotten.
Employees receive a packet of information, select a plan, and move on. Months later, when they need care, they’re often unsure where to go, what’s covered, or how much it will cost.
That lack of clarity leads to common (and expensive) behaviors:
- Using the emergency room for non-emergencies
- Skipping preventive care
- Going out-of-network unintentionally
- Delaying care until conditions become more serious
All of these decisions increase claims costs — and as we know in the benefits world, higher claims almost always lead to higher renewals.
At a national level, employer-sponsored health plans continue to see rising premiums and cost-sharing pressures, reinforcing the need for better cost management strategies.
Education Changes Behavior
The good news is that employee behavior is not fixed. It can be influenced — and improved — through intentional education.
When employees understand how their health plan works, they begin to:
- Choose more cost-effective care options
- Utilize preventive services
- Ask better questions before receiving care
- Avoid unnecessary or duplicate services
Education helps employees shift from being passive participants to active decision-makers.
And that shift matters.
Employers who invest in ongoing benefits education often see measurable improvements in utilization patterns, engagement, and overall healthcare spend.
Education Impacts More Than Costs
While cost savings are a major benefit, employee education also drives other meaningful outcomes.
Employees who understand their benefits tend to feel more confident and supported. In fact, over half of employees say that better understanding their benefits improves their overall job satisfaction, and many are more likely to stay with their employer long-term.
This creates a ripple effect:
- Improved retention
- Higher engagement
- Better overall employee experience
In a competitive labor market, those advantages matter.
What Effective Education Looks Like
Employee education doesn’t have to be complicated, but it does need to be consistent.
One of the biggest mistakes companies make is treating education as a one-time event during open enrollment. In reality, education should be ongoing and practical.
Effective strategies include:
- Short, focused benefits meetings throughout the year
- Simple guides explaining when to use telemedicine, urgent care, or the ER
- Clear communication around in-network vs. out-of-network care
- Access to support resources like nurse lines or care navigators
The goal is not to overwhelm employees with information, but to give them clear, actionable guidance they can use when it matters most.
Making It Easy to Do the Right Thing
Education works best when it’s paired with smart plan design.
For example:
- Lower or zero copays for telemedicine
- Incentives for preventive care visits
- Tools that help employees compare costs for services
When the right choices are both understood and easy to access, employees are far more likely to make them.
A Smarter, More Sustainable Approach
Managing healthcare costs is one of the biggest challenges facing employers today.
While there is no single solution, employee education is one of the most practical and underutilized strategies available.
It doesn’t require a complete overhaul of your benefits program. It simply requires a shift in focus — from just offering benefits to helping employees understand and use them effectively.
When employees are equipped with the right knowledge:
- They make better healthcare decisions
- They avoid unnecessary costs
- They engage more with their benefits
And over time, those small decisions add up to a meaningful financial impact for the company.
Final Thought
At the end of the day, a health plan is only as effective as the way it’s used.
Companies that invest in educating their employees aren’t just improving understanding — they’re building a more sustainable, cost-effective benefits strategy for the future.
About the Author
Jamie Gose is an Employee Benefits Consultant with The Pennant Group in Augusta. He works with businesses across the CSRA to design cost-effective employee benefits strategies and help employees better understand how to use their healthcare benefits.
