Worker Awareness Gaps Limited Health Insurance Uptake

New research found that many employees missed supplemental health coverage due to poor information accessibility.

Updated on Oct. 2, 2026 in Insurance

Gouache-painted illustration of a large protective shield floating in a minimalist workspace, symbolizing health benefit awareness. — New research shows that nearly half of US workers skip supplemental health insurance because of unclear enrollment information provided by employers. AI Illustration. Upload story photo >

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Do you feel you have enough clear information to choose the best health benefits for you?

An October 2025 survey of 1,130 workers revealed that limited awareness and unclear documentation hindered enrollment in supplemental health insurance. The findings highlight a disconnect between employee needs and the coverage options provided by employers.

Why it matters

Many employees fail to weigh incremental insurance premiums against potential out-of-pocket medical costs because they lack information about their available benefits. This gap leaves nearly half of the workforce without specific savings for unexpected medical expenses.

A survey of 1,130 benefits-eligible workers found 44% have no savings for unexpected costs, while 53% of those with recent medical events paid over $1,000 out of pocket. Enrollment in accident insurance reached 70% among employees aware of their access.

The players

Employee Benefit Research Institute

This is a private, nonpartisan, nonprofit research organization that focuses on health, economic, and retirement security issues in the United States.

The details

Researchers found that when employees were provided with plain-language product descriptions, interest in supplemental offerings rose significantly, reaching up to 76% for critical illness insurance. Despite this, over half of workers spent four hours or less reviewing enrollment materials during the previous year.

The survey was conducted in October 2025.
Workers reported medical events costing over $500 occurring within the past five years.
Data regarding enrollment material review time covered the year prior to the study.

Market Dynamics

This study highlights structural communication failures during the annual open enrollment period that influence consumer participation in the insurance market. These gaps mirror broader challenges in financial literacy where complex product disclosures discourage necessary asset protection.

Employees should prioritize reviewing benefits documentation for upcoming enrollment windows to avoid unexpected out-of-pocket costs. Plain-language materials can help workers determine if premiums for accident or hospital indemnity plans are worth the offset against medical bills.

The takeaway

Simplifying benefits language remains the most effective strategy to boost enrollment and protect household savings. Employees who proactively evaluate supplemental options can significantly mitigate the risk of financial strain from unexpected medical events.