Health literacy deals with how well people understand and are able to use health information for the betterment of their health. It is more than just the ability to read and write, it includes the ability to listen, follow directions, fill out forms, calculate using basic math, and interact with professionals and health care settings. In addition making sense of jargon or unfamiliar cultural norms are also a part of being “health literate”. Health literacy requires people to apply critical thinking skills to health-related issues.

Health literacy has been defined as "the degree to which individuals have the capacity to obtain, process, and understand basic health information and services needed to make appropriate health decisions." A person's health literacy is influenced by a number of issues, which includes basic literacy skills, the communication skills of health professionals, and the situations a person might come across in the health care system. These factors influences how a person finds a physician, reads instructions for medicine, and takes other health related action in their future. In order to take meaningful steps towards the improvement of their health, they need to have a more comprehensive understanding of health and disease. People with low health literacy skills often lack this essential comprehension. An interesting fact to note is that almost any one can have low health literacy, even people with good literacy skills. Most people will have trouble understanding health information at some point in their lives. It is imperative that individuals take an active role in health related decisions as part of an overall attempt to improve the quality of health care and to reduce health care costs.