Healthcare benefits are supposed to help people. But for many employees, they’ve become confusing, time-consuming, and difficult to use. In a recent episode of the Modern People Leader podcast, Medefy CEO Matt Scovil shared why that’s happening — and what employers can do to fix it.

The Problem: Healthcare Is Too Hard to Navigate

Matt’s journey started with a personal experience. With just $300 in his bank account, he needed an eye exam — and had no idea where to go or how much it would cost.

“It took me days to figure it out… If I had an app that told me where to go and how much it cost, I would’ve been done in three minutes.”

That experience wasn’t unique. It’s the reality for millions of employees today.

How Benefits Became So Complex

Over time, employer health plans have grown dramatically in size and complexity.

• Pre-COVID: ~5 benefits
• Today: 35–40 benefits

Each with its own app, login, and process. And most employees only hear about them once a year.

The Real Issue: Behavior, Not Plan Design

Employers often try to fix rising costs by changing vendors or redesigning plans. But the core issue is simpler:

“It’s not a plan design problem. It’s a behavior problem.”

Even the best plan fails if employees don’t know how to use it.

The Moment That Matters Most

Healthcare decisions don’t happen in controlled environments. They happen in everyday life:

• At the grocery store
• In the car
• At a kid’s soccer practice

And in those moments, people need quick, clear guidance. When they get it, outcomes change:

“If we’re with a member in the moment of decision, 94% of the time they take our advice.”

That leads to:

• Better decisions
• Lower costs
• Higher engagement

Why Employees Still Struggle

Even today, most employees don’t understand basic health plan terms.

“Over 90% of employees today can’t define the word deductible.”

This isn’t about effort — it’s about complexity. The system has simply outgrown how people naturally make decisions.

What Actually Works

Instead of relying on more education or more tools, Matt highlights a better approach:

1. Meet people in the moment

Provide guidance when decisions are actually being made.

2. Simplify the experience

Remove friction and make next steps obvious.

3. Align incentives

Encourage the right behaviors. One example: A company offered a $99 incentive for preventive care — and saw a dramatic increase in engagement. The lesson is clear: When behavior and incentives align, people act.

There’s No Silver Bullet — But There Is a Path

Healthcare is often treated as a problem with a single fix. But real progress comes from combining multiple strategies:

“There are no silver bullets. But you can fire a series of silver bullets in sequence that solve the problem.”

That includes:

• Navigation
• Communication
• Incentives
• Behavior change

Together, they create meaningful impact.

Final Thought: Simplicity Wins

In a system that has become increasingly complex, the most effective solutions are often the simplest.

“Simplicity drives behavior change. Behavior change drives cost savings.”

For employers, that’s the opportunity: Make healthcare easier to understand. Make it easier to use. Better outcomes will follow.

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Listen to the Full Episode & Download the Benefits Optimization Guide

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