My Benefit Advisor: Why Employees Miss Their Benefits—and How Employers Help

For many mid-sized employers, one of the most overlooked challenges in their benefits strategy is also one of the most costly: employees simply don’t understand their benefits. Studies consistently show that fewer than 40% of employees feel confident selecting or using their health plan. For smaller and mid-sized organizations where every dollar of premium matters, benefits confusion can directly translate into higher claims, lower engagement, and diminished ROI.

The root problem is not a lack of benefits options, but a lack of clarity. Employees are overwhelmed by insurance jargon, complex plan structures, and enrollment materials that feel more like legal documents than decision-making tools. As a result, many default to the same plan every year without evaluating alternatives that might save them (and the company) money.

The path forward starts with implication and education. Mid-sized employers can make a significant impact by redesigning communication around how people actually learn. This includes using plain-language explanations, visual comparisons, and short videos that break down key concepts like deductibles, HSAs, out-of-pocket maximums, and provider networks. Digital decision-support tools can help employees model costs in real time, so they can see the financial impact of their choices…not just read about it.

Equally important is year-round communication. Benefits literacy shouldn’t be a once-a-year event. Quarterly micro-topics, such as preventive care reminders, urgent care vs. ER guidance, and HSA contributions strategies, keep employees engaged and avoid costly misuse of the plan.

Finally, personalized guidance can make a measurable difference. Offering short “benefits coaching sessions” during open enrollment or making HR and brokers available for talk-throughs helps employees feel supported, not overwhelmed.

When employees understand their benefits, they make smarter healthcare decisions, help control claim costs, and feel more valued. For mid-sized employers, improving benefits literacy is one of the most effective, and low-cost ways to strengthen retention, culture, and financial performance.

For more information about My Benefit Advisor, visit gscc.mybenefitadvisor.com or contact Rob Higginbotham at (800) 377-3536.