Healthcare literacy may be viewed as a public health or provider challenge, but because employers play such a large role in providing access to healthcare, they are necessarily involved in the issue of healthcare literacy. Both the COVID-19 crisis and the recent focus on racial health disparities have only underscored the importance of addressing healthcare literacy in the workforce.
Health literacy is defined as “the degree to which an individual has the capacity to obtain, communicate, process, and understand basic health information and services to make appropriate health decisions.” For employers, this corresponds with how members make decisions about their health. Where do they find information? Do they understand their provider’s care recommendations? Do they think critically about their options, and which services best match their needs, to make a decision?
Many people find the U.S. health system confusing, but some struggle more than others to understand how to interact with the system to get the care they need. Why is this an employer concern? People with low healthcare literacy have worse outcomes and have higher healthcare spend. Multiple studies have shown that people with low healthcare literacy were more likely to be hospitalized, have bad disease outcomes and less likely to utilize preventive care. There is particularly damning evidence of the impact of poor healthcare literacy in people with cancer or diabetes.
Additionally, since low literacy can result in inefficient healthcare choices, there’s a cost impact as well. The annual cost of low health literacy to the U.S. economy is estimated as $238 billion.
What can employers do to improve healthcare literacy?
Given employers serve as an access point to healthcare, they have the opportunity to improve the health literacy of their members, reducing inefficiency and, potentially, cost. Here are a few strategies to consider:
Employers are now on the frontlines on the battle to improve healthcare literacy. It is important to step back and understand how you can help members build the foundations of their healthcare literacy, like learning your ABCs, so they can grow to be confident in their healthcare decisions and, ideally, realize better outcomes.
We are diving deeper into this conversation at HLTH VRTL 2020, taking place October 12-16, 2020. We encourage employers to bring their voices to the table by joining the conversation. Register here or qualify to attend free of charge through the Hosted Buyer Program. Additionally, Mercer is pleased to serve as one of the lead sponsors for the “Health Equity Program” at HLTH VRTL 2020. This program will look deeply into some of the racial inequities further exposed by the impact of the COVID-19 pandemic, and will explore possible strategies and actions that employers and other healthcare organizations might implement to help achieve better outcomes.