While most Americans who are insured get their coverage through their employer, a considerable number of them don't fully comprehend their benefit options.
According to a recent survey conducted by employment services firm Automatic Data Processing, approximately 40 percent of employees don't understand their benefit plans, even though 80 percent of human resources decision makers believe it's vital that they have a firm grasp of what they provide for.
Tim Clifford, president of benefits services at ADP, said the problem may be due to a lack of communication.
"With many employees asked to take on greater responsibility for managing their own benefits, there is room for improvement by HR departments to engage employees in the decision-making process," said Clifford. He added that the internet and web-based technologies have made it easier to understand benefit plans but not enough people are taking advantage of them.
The study also found that approximately 66 percent of employers do not have employee communication programs that may help resolve this issue. As a result, it's important for insurance agents to make sure their customers are fully aware of their plans so that they can make more informed decisions for their overall health and well-being, both physically and financially.