How to Help Employees Understand Their Benefits (and Save You Money)

Let’s be honest—benefits can be confusing. High deductibles, copays, out-of-network charges, EOBs, HRAs, HSAs… it’s a lot. And when employees don’t fully understand how their plan works, they tend to make decisions that cost them—and you—more money in the long run.

But here’s the good news: educating your team doesn’t have to be hard, and the payoff is big. When employees are confident in their coverage, they use their benefits more wisely, avoid unnecessary costs, and get the care they actually need. That means fewer claims surprises, fewer complaints, and a healthier, more financially stable team.

Here’s how you can help employees better understand their benefits—and why doing so is a smart investment for your business.

1. Make Education a Year-Round Effort

Open enrollment shouldn’t be the only time your team hears about their benefits. In fact, that’s the moment they’re most overwhelmed. Break things down into bite-sized, easy-to-digest updates throughout the year. Think monthly email tips, quick Q&A sessions, or “Wellness Wednesday” reminders. A little info at a time keeps employees engaged and empowered.

2. Speak Human, Not Insurance

Most people don’t speak “insurance.” So skip the jargon. Explain how plans work using real-life examples:

• "Here’s how you’d use your HSA at the pharmacy"

• "What happens if you go to an out-of-network ER"

• "Why it matters if you choose urgent care vs. the ER"

  
  

Clear, simple language builds trust and improves decision-making.

3. Encourage Preventive Care and Smart Choices

Many plans include $0 preventive care—but if your team doesn’t know that, they may skip annual check-ups or routine screenings. The result? Bigger health issues down the line, higher claims, and more missed work. Educating employees about preventive care benefits can reduce long-term costs and support healthier outcomes.

4. Explain the Value of Their Plan

Sometimes, employees don’t realize how much the company is already covering. Help them understand the full picture:

• What’s coming out of their paycheck

• What the employer is contributing

• What tools or accounts (like HRAs or HSAs) are there to help them

  
  

When employees see the full value, they’re more likely to appreciate—and wisely use—what’s available to them.

5. Be a Trusted Resource (or Work with One)

Having a local, responsive benefits partner makes all the difference. Whether it’s guiding employees through a denied claim or answering quick questions about BBP cards, a knowledgeable broker keeps confusion and frustration at bay. And the fewer complaints HR has to field, the better for everyone.

Takeaway:

Educating employees isn’t just about being helpful—it’s about being smart. A team that understands their benefits is a team that saves money, uses coverage wisely, and feels supported by their employer.

At S+H Benefit Solutions, we specialize in making benefits make sense—so your business can stay focused on what matters most.

Want to learn how to simplify benefits for your team? Let’s talk.