29-05-2025
Cigna study: High health insurance literacy associated with improved vitality, work productivity, and health outcomes
The complexity of the U.S. health care system makes it challenging for many people to understand and utilize their health benefits effectively. This adversely affects individual health, worker productivity, and perception of the health care system. With 164 million Americans receiving health benefits through employers, improving health insurance literacy is crucial for enhancing overall health and vitality and driving business success. [1]
That's the key finding of new research from Cigna Healthcare that delves into the importance of health insurance literacy, which is the ability to understand, evaluate, and use health insurance information to make informed decisions.
'While many challenges are facing our nation's health care system, health insurance literacy is of urgent importance,' said Dr. David Brailer, chief health officer of The Cigna Group, the parent company of Cigna Healthcare. 'U.S. employers can lead the way, pushing for systemic improvements that drive sustainability of health care, improve quality, and help employees lead healthier and more productive lives.
'By taking proactive steps to educate and support people, employers can help ensure a healthier, more informed, and more engaged workforce,' he said. 'Employers cannot do this alone, however. It requires a collaborative effort across stakeholders that goes beyond delivering communications. It means helping people understand and act appropriately on that information, while advocating for positive change in how the system works.'
The ROI of employer-sponsored health benefits and the power of health insurance knowledge
The findings underscore the necessity for immediate and long-term actions to improve health insurance literacy, which is associated with better health outcomes, financial stability, and higher satisfaction with the health care system. The research shows that employer-sponsored health benefits yield significant returns on investment (ROI) by lowering direct and indirect medical costs, improving productivity, and aiding in recruitment and retention.
By helping employees effectively navigate the health care system, employers gain a productive workforce and stable health care costs. Conversely, the cost of inaction is high, with low health insurance literacy linked to worse health outcomes, reduced productivity, and increased health care costs due to nonadherence and delayed care.
The research also reveals a strong correlation between health insurance literacy, health engagement, and vitality. Only 20% of adults surveyed say they have high health insurance literacy, while the majority have medium or low literacy. The report highlights that individuals with high health insurance literacy have higher vitality scores than those with low literacy.
Proactive health engagement and better health care experiences
The research also explores how higher health insurance literacy leads to proactive health engagement. Individuals with a better understanding of how their insurance works are more likely to rate their physical and mental health positively, manage chronic conditions effectively, and adhere to prescribed treatments. They also are more likely to receive preventive health care services, such as annual physicals, dental cleanings, and cancer screenings.
In addition, people with higher health insurance literacy are likely to experience fewer unexpected costs and have better health care experiences. Nearly 1 in 3 people with low health insurance literacy has received an unexpected bill or coverage decision, compared to only 14% of people with high health insurance literacy. These negative experiences can lead to delayed or skipped care. The report also indicates that individuals with high health insurance knowledge are more likely to research and compare health plans and participate in programs to manage their chronic conditions.
Knowing how to evaluate and use health insurance is a strong indicator of satisfaction with health benefits. The report finds that 75% of people surveyed with high health insurance literacy are satisfied with their employer benefits, compared to 23% with low literacy. Additionally, 94% of those with high literacy are satisfied with their health insurance provider.
Helping employees maximize their health benefits
Employers play a critical role in improving health insurance literacy. By investing in educational programs, interactive tools, and supportive environments like those detailed below, employers can help employees use their health benefits effectively.
Educational programs with clear communication: Providing health engagement sessions, webinars, and online courses to educate employees about their health benefits.
Interactive tools: Offering plan comparison tools, cost calculators, and benefit portals to help employees make informed decisions.
Supportive environment: Fostering an environment where employees feel comfortable asking questions and seeking assistance with their health needs.
By taking proactive steps to enhance health insurance literacy, employers – and the health care industry as a whole – can create a healthier, better informed, and engaged population.
Cigna Healthcare is a health benefits provider that advocates for better health through every stage of life. We guide our customers through the health care system, empowering them with the information and insight they need to make the best choices for improving their health and vitality. Learn more at
