The Hidden Cost of Confusion: Why Health Illiteracy Is Driving Up Your Benefits Spending

ARTICLE | January 20, 2026

Imagine an employee with an ear infection rushing to the emergency room because they don't understand their health plan coverage well enough to know they should visit their primary care physician instead. This scenario plays out millions of times across America, driven by a startling reality: nearly half of American adults have difficulty understanding and using health care information. The consequences extend far beyond confusion. People with lower health literacy use emergency services at twice the rate of others, stay in hospitals nearly two days longer, and fill three times as many prescriptions. For employers, this translates directly into higher healthcare costs and less effective benefit utilization. The good news? Simple changes to how you communicate benefits can make a significant difference.

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