Increasing engagement in your health benefit

According to KFF¹, 91% of U.S. workers are employed by a company that offers health benefits to at least some employees. But even the best health benefit won't deliver its full value if employees don't understand or use it. That's why employee engagement is critical to the success of any benefits program.

In this article, we'll go over six ways you can increase engagement in your employee health benefit.

In this blog post, you'll learn:

• Why engagement matters when offering employee health benefits.
• Practical ways to increase health benefit utilization and participation.
• How an HRA can help you offer a more personalized employee benefit.

Why is offering a health benefit important?

Offering health benefits shows employees that your organization values their well-being and is committed to supporting them. It can also help your company stand out in a competitive hiring market.

PeopleKeep by Remodel Health's Employee Benefits Survey found that benefits play a major role in attracting talent. In the survey, 81% of employees said an employer's benefits package is an important factor when deciding whether to accept a job. Health benefits ranked as the most valued benefit, with 92% of employees saying they're important.

Beyond attracting talent, health benefits can improve employee satisfaction and retention. When employees feel supported by their employer, they’re more likely to stay engaged and less likely to seek opportunities elsewhere.

How to increase employee engagement in your health benefit

There's no good in offering a health benefit that your employees don't use. If your employees aren't using their benefits, they won't reap the rewards. It can also be frustrating to spend money on benefits that see little to no use.

Let's go over six strategies that can help you improve employee engagement in your health benefit.

1. Provide personalized benefits

A traditional group health insurance plan is the standard choice for many employers. But it's not always the best option. Group plans often offer limited flexibility compared to more personalized benefit options. Employees also have limited control over their coverage options and the provider networks they can access.

Plus, employers often face several challenges that can make traditional group health insurance costly and difficult to manage, including:

• Rising insurance premiums
• Annual rate increases that can strain budgets
• Minimum participation requirements that may prevent small employers from offering coverage

One of the best ways to increase engagement is to offer personalized health benefits. Employees are more likely to value and use benefits that align with their unique healthcare needs and preferences.

HRAs are employer-funded health benefits. With a stand-alone HRA, employers can reimburse employees for individual health insurance premiums instead of purchasing a group plan on their behalf.

HRAs can also improve the employee experience by giving individuals more control over their coverage. By choosing their own health plan, employees can select coverage that fits their medical needs, budget, and preferred providers.

Two of the most popular stand-alone HRAs are:

• The individual coverage HRA (ICHRA): The ICHRA works for employers of all sizes. Employees need their own individual health insurance plan to participate. A major benefit of the ICHRA is the flexibility it gives employers. They can customize allowances for different employee classes, such as full-time or part-time workers. They can also vary allowances by employee age and family status, such as single or married.
• The qualified small employer HRA (QSEHRA): The QSEHRA is only for small employers with fewer than 50 full-time equivalent employees (FTEs). All W-2 employees qualify for this benefit. But they must have coverage that meets minimum essential coverage (MEC) standards to receive reimbursements.

With an HRA, employers set a tax-free allowance that employees can use toward eligible healthcare expenses. Employees purchase their own individual health plan or pay for other eligible expenses, then submit documentation for reimbursement.

Some examples of HRA-eligible expenses include:

• Individual monthly premiums for health, dental, and vision insurance
• Preventive care services
• Emergency care services
• Prescription drugs
• Over-the-counter medicine
• Mental health counseling

2. Communicate clearly and frequently

Effective communication can also have a direct impact on increasing employee engagement. Make sure to regularly update your workforce on the employee benefits available to them. This includes how to access them and any changes or updates to the company's employee benefit programs.

Use several communication channels to share this information with employees, such as:

• Email
• Newsletters
• Intranet portals
• In-person meetings

3. Educate employees about their benefits

Many employees may not understand the range of health benefits available to them or how to use them best.

To help your employees better understand their health benefits, you can offer educational resources, such as:

• Workshops
• Webinars
• One-on-one consultations with benefits experts

For example, your HR team could hold quarterly meetings with a representative from your insurance provider. This would give employees a chance to ask their questions in person and put a face to the name.

4. Create an employee wellness program

To enhance workplace wellness, consider incorporating additional features into your health benefit. Implementing a wellness program can reinforce your dedication to boosting employee health outcomes.

Wellness programs can help employees prioritize preventive care, build healthier habits, and manage health risks before they become more serious.

Some examples of employee wellness programs include:

• Smoking cessation programs
• Weight loss programs
• Personal health assessments
• Disease management programs
• Blood pressure screenings
• Biometric screening fairs
• Mammogram screening fairs
• Flu shot clinics
• Virtual fitness challenges

Keep in mind that you can design your employee benefit programs to meet the needs of your employees. You can focus purely on physical wellness, or take a holistic approach by including social, financial, and mental health.

5. Offer incentives

Incentives can be a great way to encourage your employees to take advantage of their health benefits. Consider offering rewards or prizes for employee participation in wellness programs, completing health screenings, or reaching specific health goals. Incentives can range from gift cards to additional paid time off (PTO), depending on the budget and resources available.

6. Ask for employee feedback

Finally, if you want to improve the employee experience with health benefits, you should regularly ask them for feedback. Ask your employees for suggestions on how to improve the benefits package, what programs or services they would like to see added, and how the benefits have impacted their health and well-being.

Sending out employee surveys once or twice a year is an easy way to gauge how your employees feel about their benefits, whether they understand them, and if they think something is missing. Take the survey results and update your plan accordingly. This effective collaboration can help keep employees interested in what you're doing to improve workplace wellness.

How PeopleKeep by Remodel Health can help

Small and mid-size businesses often struggle to afford traditional group health insurance. An HRA offers a flexible and cost-effective alternative. While the transition to an HRA might seem daunting, PeopleKeep by Remodel Health ensures a seamless switch.

Our user-friendly software simplifies the process of offering a tailor-made health benefit to your team. With our help, you can set up and manage your benefit in just minutes each month.

Our benefits administration services include:

• Customizing your plan and allowances
• Reviewing documentation for employee expenses
• Generating federally required plan documents for compliance and privacy
• Providing award-winning customer support

Our team handles these tasks so you can focus on managing your business. Plus, we improve the employee experience of shopping for health insurance coverage. Instead of struggling to figure out the Health Insurance Marketplace on their own, employees can shop for individual health plans right from their accounts.

Want to offer an ICHRA as a large employer? Remodel Health's ICHRA+ solution is the best fit for you. It comes with expert, best-in-class customer support and change management, making the switch from group coverage simple.

Conclusion

Employee engagement is essential to the success of any health benefit program. By offering personalized benefits, communicating clearly, and educating employees about their options, employers can increase participation, improve employee satisfaction, and help their workforce get more value from their health benefits.

This article was originally published on January 10, 2022. It was last updated on July 2, 2026.

References

1. 2025 Employer Health Benefits Survey