Dental insurance is one of the most popular employee benefit programs offered by employers. It is a fairly expensive benefit plan so it is important that employers evaluate the need for such a plan. Items to consider include:
- Long term costs of the plan
- Should the plan be fully insured or self insured
- Is the plan necessary to attract and retain employees
- Are other employers in your industry offering the benefit
Rather than purchase an insured dental plan many employers determine how much they are willing to pay for a dental benefit and contribute that amount to the Health Care Account of their cafeteria plan. This approach is very effective in controlling plan costs. The table below provides a summary of typical dental plan provisions.
Typical Plan Design Provision
|Group Size|| 5 or more employees for full coverage
Preventive only plans start with 2 or more employees
|Benefits|| 80% to 100% Preventive Care
60% to 85% for minor restorative care
40% to 60% for major restorative care
50% for orthodontia is usually optional by plan
|Benefits Amounts|| Annual benefit maximum per employee ranges from $500 to $2000 with $1000 being the most common amount.
An annual deductible or $25 or $50 usually applies to the restorative areas.
|Rate Guarantees||1 year|
|Plan Types||Traditional or Voluntary|