The Top 5 Reasons Employees Aren’t Using Their Healthcare Benefits (And How to Fix It)

Offering healthcare benefits is an essential part of building a competitive, modern workplace—but if employees aren’t using them, your investment could be going to waste. Underutilized healthcare plans are a common issue for employers across industries. Even when companies provide coverage, employees may hesitate to engage with it, missing opportunities for care and creating hidden costs for the business.

At Health Compass Inc., we help businesses remove the most common barriers to benefit usage through smarter, more accessible solutions like Vital110. In this article, we’ll break down the top five reasons employees skip out on using their healthcare benefits—and what your organization can do to fix it.

1. They Don’t Understand What’s Included

Benefit plans are often introduced through dense packets of information or one-off HR presentations. As a result, employees may feel overwhelmed or confused about what’s actually available to them. They might not know which services are covered, how to access care, or even where to start when they need help. When there’s uncertainty, employees are more likely to avoid using their benefits altogether.

How to fix it: Simplify your benefits communication. Instead of relying on formal documentation alone, share benefit information in bite-sized, digestible ways throughout the year. Host informal Q&A sessions, send monthly reminders, or provide quick-start guides. Better yet, partner with a solution like Vital110 that makes benefits easy to navigate and delivers clear, app-based access to everything an employee needs to know.

2. The Costs Still Feel Too High

Many employees have high-deductible health plans or are unsure what they’ll owe for services—even with insurance. For employees living paycheck to paycheck, the fear of surprise bills or out-of-pocket costs is a powerful deterrent. As a result, they delay care, skip preventative screenings, or avoid seeking help until something becomes urgent and expensive.

How to fix it: Eliminate cost barriers. Vital110 provides free virtual primary and urgent care, free preventative lab testing, and no-cost mental health resources. By removing financial obstacles, employees are far more likely to seek timely care, stay healthy, and keep costs down for your organization in the long run.

3. It’s Too Difficult to Access Care

Convenience matters. If employees have to call multiple providers, wait weeks for appointments, or travel long distances for care, they may decide it’s just not worth the hassle—especially for preventative care or minor concerns. Delayed care often snowballs into larger issues, which means increased costs and productivity loss down the line.

How to fix it: Offer benefits that meet employees where they are. Virtual healthcare access is no longer a nice-to-have—it’s expected. Vital110 gives employees 24/7 access to virtual urgent and primary care, so they can speak to a provider from home, at work, or while traveling. Simple access encourages regular usage and keeps small problems from escalating.

4. They Don’t Think the Benefits Apply to Them

Healthy, younger, or single employees may assume they don’t need to worry about healthcare. Unfortunately, that mindset often leads to skipped screenings, missed signs of chronic conditions, and increased risk down the line. When employees view benefits as something they’ll use “someday,” they’re less likely to engage with them consistently.

How to fix it: Reframe your benefits as proactive and personalized. Preventative care isn’t just about treating illness—it’s about staying well. Highlight services that benefit everyone, like wellness assessments, mental health support, and fitness integrations. Encourage employees to think of healthcare as part of everyday life, not just a safety net.

5. Mental Health Support Is Still Stigmatized

Even as mental health conversations become more normalized, stigma remains a powerful barrier—especially in the workplace. Many employees worry about confidentiality, fear being judged, or don’t realize that mental health resources are even available. As stress and burnout continue to rise, lack of access or usage creates real risks for businesses.

How to fix it: Make mental health support clear, accessible, and stigma-free. With Vital110, employees can connect to licensed counselors virtually, confidentially, and at no cost. Employers should reinforce that using mental health resources is a sign of strength, not weakness, and create an environment where mental wellness is prioritized just as much as physical health.

Bonus: The Role of Communication and Culture

Even the most comprehensive benefits won’t be used if your company culture doesn’t support them. Ongoing education, visible support from leadership, and open communication channels are key to increasing usage. Encourage regular feedback through surveys or employee check-ins, and treat your benefits as a living strategy—not just a once-a-year discussion.

Vital110 Makes Employee Engagement Easier

At Health Compass Inc., we created Vital110 to solve the common issues that cause underutilization. Our platform gives employees a seamless experience that’s built for ease, speed, and impact. With free access to high-value care and a modern, intuitive interface, employees are more likely to use their benefits—and your organization will see the results.

Ready to Increase Benefit Engagement?

If you’re investing in employee healthcare, make sure your team is getting the most from it. Choose a smarter, simpler solution that supports real usage and lasting results. Get a quote today to see how Vital110 can help your team stay engaged, healthy, and empowered year-round.