Better Prepared: Helping employees understand their health benefits

In today’s competitive job market, private health insurance is a powerful tool to attract and retain top talent. According to the Association of British Insurers (ABI), over half of job seekers view health coverage as a decisive factor when choosing an employer [1]. And its value doesn't stop at recruitment. When employees take care of their health, it can improve morale and productivity in the workforce.

For global businesses, health insurance can also be a vital strategic asset. Our Cigna Healthcare International Health 2026 Globally Mobile Study revealed nearly three in four people wished for more support with relocation, a process often marked by acute stress [2]. Providing seamless, long-term coverage across multiple countries with international health insurance can remove barriers to care, guide employees through unfamiliar medical systems, and often fulfil mandatory visa requirements for international assignments.

But a health insurance programme delivers greater value when employees understand and use the right support. Unfortunately, many don’t know how. A recent study revealed that 51% of insured adults struggle to understand at least one core aspect of their coverage [3]. Yet the challenge often begins before employees need to use their benefits. Our recent Cigna Healthcare International Health 2026 survey on global well-being found that out of 12,000 respondents globally, only 34% indicated they understand health insurance terms [4]. The underlying cause is rarely a lack of interest or need. It’s a lack of health insurance education.

What is health insurance education and why is it important?

Health insurance education starts before purchasing a policy. It’s the practical ability to navigate a plan: understanding how to make a claim, estimate out-of-pocket costs, and access the right level of care at the right time.

When health insurance understanding is high, the impact on employees can be profound. A study by The Cigna Group found that higher health insurance understanding directly correlates with increased employee vitality, energy, and engagement [5].

The true cost of confusion

Our research indicates that the majority of individuals agree that they are the sole person responsible for managing their health [4]. But the reality is that only 4 in 10 adults have the level of health insurance education needed to manage everyday health decisions effectively, indicating a support gap that should be acknowledged [6]. When coverage feels overwhelming, employees are far more likely to delay or avoid seeking care altogether. This creates additional barriers.

This confusion carries direct costs for employers:

• Escalating health risks – Employees often skip critical preventive care like routine screenings and vaccinations. As a result, minor, manageable conditions escalate into more complex concerns that require extended time off. According to the Office for National Statistics (ONS), UK workers lost an average of 4.4 days to illness or injury in 2025 [7].
• Eroded workforce trust – A lack of clarity around benefits can damage morale and job satisfaction. Our research from 2025 indicates that only 39% of employees feel their employer provides adequate opportunities to care for their personal health [8].

How you can support your employees

Simply providing a health insurance policy is not enough. To protect both your people and your investment, HR teams must bridge the gap between offering benefits and ensuring employees understand them by increasing their health insurance understanding with the right support and advice.

• Cut through the jargon – Use simple language or short visual guides, like our Better Prepared video series, to make complex concepts accessible.
• Spotlight preventive care – Promoting services like preventive screenings can be valuable through supporting long-term health and reducing costs. Ensure these services are highlighted for your employees [9].
• Offer accessible support – Ensure employees know where to turn when they have questions. Offering clear, visible support builds trust and drives greater engagement.

By making health insurance education a core part of your HR strategy, you can help your workforce stay healthy, supported, and engaged.

Want to help your employees learn more? Our Better Prepared series of short videos is designed to support these conversations by explaining key health insurance concepts in clear, accessible language, helping employees better understand their coverage and make more informed health care decisions.

Sources

1. The ABI. (2023). Access to health insurance through work increasingly important to UK workers. https://www.abi.org.uk/media-hub/news-post/access-to-health-insurance-through-work-increasingly-important-to-employee
2. Cigna Healthcare International Health. (2026). Cigna Healthcare International Health 2026 Globally Mobile Edition. https://www.cignaglobal.com/global-well-being-and-vitality/turning-global-mobility-into-performance-edge
3. KFF. (2023). KFF Survey of Consumer Experiences with Health Insurance. https://www.kff.org/affordable-care-act/kff-survey-of-consumer-experiences-with-health-insurance/
4. Cigna Healthcare International Health. (2026). Cigna Healthcare International Health Study. https://www.cignaglobal.com/global-well-being-and-vitality
5. The Cigna Group. (2026). High health insurance literacy associated with improved vitality, work productivity, and health outcomes. https://newsroom.cigna.com/health-insurance-literacy-is-associated-with-improved-vitality-productivity-and-health-outcomes
6. Australian Commission on Safety and Quality in Health Care. (2026). Understanding health information (health literacy). https://www.safetyandquality.gov.au/supporting-your-health-care/understanding-health-information-health-literacy
7. Office for National Statistics. (2024). Sickness absence in the UK labour market. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/sicknessabsenceinthelabourmarket/2025
8. Cigna Healthcare International Health. (2025). Cigna Healthcare International Health Study. cigna-healthcare-international-health-study-2025-final.pdf
9. Cigna Healthcare International Health. (2025). Preventive Care for Global Workforces: A Guide for Employers. https://www.cignaglobal.com/blog/global-workforce-insights/preventive-care-for-global-workforces