As an HR professional, you deal with the consequences of health insurance illiteracy every day:
- Employees make poor choices based on incomplete knowledge or false assumptions, increasing frustration and driving up costs for your entire organization.
- You and your colleagues are inundated with constant questions and confusion, repeatedly asked to explain the same basic concepts.
- Absenteeism and presenteeism plague your company’s productivity as employees neglect to use their benefits to treat their chronic health issues.
So, you probably won’t be surprised to learn that about half of insured people have difficulty understanding at least one aspect of their health insurance.
Related: Health Insurance Key Terms, Explained. Check it out here →
According to a 2023 KFF survey:
- 35% of insured people aren’t sure what their insurance will cover.
- 30% don’t know what they will owe out-of-pocket.
- 30% can’t decipher an explanation of benefits.
- 25% can’t define terms such as “deductible” or “copay.”
These stats might be discouraging, but they also present an opportunity.
By helping your company’s employees bridge the health insurance information gap, you can help them live healthier, happier lives while lowering healthcare costs and boosting several crucial metrics for your organization, including engagement, productivity, and morale.
There are many effective ways to educate your employees about health insurance and related topics, from animated explainer videos to user-friendly decision-support tools.
However, if you’re just launching a healthcare education campaign, email might be the easiest way to get started. It costs almost nothing and appears instantly in every employee’s inbox with the click of a button.
For your inspiration and use (free of charge, of course), here are three email templates designed to answer some of the most common and confusing health insurance questions:
- How can I save money on prescription medications?
- How does my provider network work?
- What is an HSA, and is it worth having one?
Health Insurance Explainer
Email Template #1: Prescription Drug Savings
About two-thirds of American adults take at least one prescription medication, and 82% say the cost of prescription drugs is unreasonable. This email instructs employees on ways to lower their (potentially substantial) prescription drug costs by making the most of their insurance coverage.
Subject line: Prescription Costs Out of Control? 6 Money-Saving Tips
Dear ,
If you’re like most Americans, you’re frustrated with the cost of prescription medication. Even with insurance, drug costs can take a significant bite out of your budget.
The HR team here at understands your frustration. The last thing we would want is for you to stop taking an essential medication because you didn’t think you could afford it. After all, your health comes first!
Our employee healthcare plans offer several ways to save on prescriptions. But even if you get insurance through a family member’s job, the following tips should help you cut costs while still getting the meds you need:
- Switch to generics. Many common drugs are offered in cost-effective generic formulations that contain the exact same active ingredients as the name brands. Ask your doctor.
- Buy in bulk from a mail-order pharmacy. Check your insurance plan to see if it covers home delivery.
- Ask your doctor about other equally effective medications. There are often many ways to treat the same condition. Your doctor can help you find affordable alternatives.
- Look for manufacturers’ coupons or rebates. They do exist! Search NeedyMeds.org (a non-profit website) to find them.
- Make sure you are using a preferred pharmacy. Your insurance plan may offer discounts tied to specific pharmacy chains.
- Use your HSA or FSA. A health savings account (HSA) or flexible spending account (FSA) will let you pay your drug copays with pre-tax dollars.
If you have any questions or concerns about prescription drug costs, please don’t hesitate to contact any HR team member. Wishing you good health!
Health Insurance Explainer
Email Template #2: In-Network vs. Out-of-Network
Believe it or not, not everyone grasps that their health insurance coverage is strongest within a specific provider network. And even if they do, about a quarter of insured people aren’t sure how to determine if a particular provider is in their network. This email explains the significant financial benefits of choosing network providers.
Subject line: How to Save Money With In-Network Healthcare Providers
Dear ,
Nothing is more aggravating than seeing a medical provider and getting hit with a huge bill because the provider wasn’t in your insurance company’s network. If this has happened to you, the good news is it doesn’t have to happen again.
Your company health plan offers access to a vast range of highly qualified, pre-vetted providers and facilities. Remain within this network to get the most out of your healthcare spending.
Here’s how to make sure your next provider is in-network:
- Run a search on the insurance plan’s website or app. The searchable directory should indicate whether a provider accepts your insurance and the level at which they’re covered. You can also call your insurance plan for assistance.
- When you call to make an appointment, ask the provider. The provider’s office will have the most up-to-date information on their insurance participation.
- If another doctor has referred you, don’t assume it’s covered. Your referring provider may not know who is in your network. Most doctors will gladly refer you to someone else if a particular referral is not covered.
- Don’t forget to check hospitals, labs, and other facilities. They, too, must be in-network to qualify for the highest level of coverage.
HR team members would be happy to assist if you need help finding or identifying in-network providers. Just let us know!
Health Insurance Explainer
Email Template #3: HSA Contributions
The tax-slashing benefits of a health savings account (HSA) might be the most misunderstood concept in the benefits landscape. Send this email before open enrollment to help erase some of the confusion around this often-overlooked option.
Subject line: How Can a Health Plan Help You Save for Retirement?
Dear ,
You may have noticed that one of your health plan options for the coming year is a high-deductible health plan (HDHP) coupled with a health savings account (HSA). We wanted to send this quick email to zero in on the HSA and explain how it can be so much more than a health plan.
Like a flexible spending account (FSA), you contribute to your HSA with each paycheck, and you can use the money for qualified medical expenses — everything from copays to eyeglasses to OTC medication to sunscreen. Also, like an FSA, HSA contributions come before taxes, meaning the IRS won’t touch that portion of your income.
But that’s where the similarity ends.
Unlike an FSA, HSA funds never expire. Your account is yours forever. And it can grow! Over time, your HSA balance accrues interest — you can even invest it.
Here’s the best part: HSA growth is also not taxed! In other words, HSAs have a triple tax advantage:
- Zero taxes on HSA contributions
- Zero taxes on HSA growth
- Zero taxes on HSA use for qualified expenses
So, if you start investing in an HSA now, it can actually save you money during your retirement.
In fact, many financial experts recommend delaying HSA reimbursements and instead letting the money multiply until retirement. (A $1,000 bill now could be $10,000 in tax-free financial gains 20 years from now.)
Also, keep in mind that if you ever leave your job here, you can take your HSA with you. As we said, it’s yours to keep forever!
Those are just the basics. If you have more questions about our HDHP/HSA option, just reach out to an HR representative. We’re experts at this stuff and always happy to help!
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