Why Dental Insurance Is More Than Just Another Benefit
by Karen M. Gustin, LLIF

What is the real value of dental insurance? Dental insurance is more than merely a mainstay of a good employee benefit package – it’s a benefit that employees expect from a responsible employer. It is also essential, not only for maintaining the health of employees and their families, but also for maintaining the financial well being of employers and the economy.

A Historical Perspective

Until recently, most people did not take care of their teeth the way we are able to do today. Without dental insurance and easy access to care, many suffered from bleeding gums, infections, cavities, and rotten teeth. People put off visiting the dentist until the pain became unbearable. They often missed work when they could not handle the pain or stayed home with kids who had to miss school due to toothaches or other dental illness.

Health professionals and business leaders became concerned about the affect of poor dental health on the nation. In response, insurance carriers began offering dental plans in the 1970s.These initial plans offered basic, low-premium coverage designed to encourage people to visit their dental offices for checkups and routine care.

Dental Care Enhances Productivity and Performance

Over the years, as employees recognized the value of dental insurance in preventing and treating dental health problems, they began asking for increased coverage levels and services. Most businesses were more than willing to oblige after witnessing enhanced productivity and performance of employees who could better care for the oral health for themselves and their families. The insurance was often offered at minimal or no additional cost to their employees.

During the past three decades, more and more insured employees have adopted good dental care. They are more likely to floss and brush daily and schedule regular checkups for preventive care and detection of health concerns in the early stages. Dental insurance has become a critical option in many benefit packages, enabling employers to protect employee health while enhancing recruitment and retention.

Economic Concerns Affect Dental Benefits

Many employers are reassessing their employee benefit plans amid their concerns over the recent economic slowdown. They know dental insurance can contribute to employee performance and they want to continue offering comprehensive dental benefits to employees, but they are looking for ways to cut costs. Many employers wonder whether they can continue to offer dental benefits to employees in the future.

A Return to Solutions from the 1980s

Employers also faced tough financial situations back in the 1980s. Voluntary plans became popular and dual or high-low plan designs enabled employers to offer employees options. Employees could choose a high-low basic plan featuring coverage of preventive care and discounts on a few key services or a comprehensive plan providing extensive coverage and care choices. While some employers provided dental benefits at no cost to employees, many shared the premium cost with employees or offered access to dental benefits through a contracted carrier with employees paying the monthly premium rate.

Not surprisingly, the current economic situation is causing many employers to return to plan designs adopted in the 1980s. High-low and basic plans with limited services are attractive options to employers today. More than half of employers are exploring benefit strategies that they would not have considered in the past, according to Towers Perrin’s February 2009 study. But most understand the importance of maintaining good communication and education with employees on the value of their benefits and any changes in plan design.
Employees Struggle with Dental Decisions

Like employers, employees are struggling with limited financial resources, which means that they may consider dropping their dental insurance. They may believe that investing time and money in preventive care is unnecessary, especially if they are not experiencing any health concerns or pain. They may view dental insurance as a luxury they can no longer afford.

Once again, health professionals and business leaders have good reason to worry about a return to poor oral health practices and higher medical expenses. One thing is true in any economy: it is cheaper to pay for preventive care than for the more costly repairs, medical tests, surgery, or other health care treatments that often result from neglect. You can enhance your value by helping clients educate employees about how keeping up with daily oral care and regular checkups is an investment in their dental health.

The Importance of Re-evaluating Insurance Carriers

The soft economy is also affecting insurance carriers across the country. Many have trimmed operating costs and some are experiencing cash flow problems that limit their customer service support and delay claims processing.  As you review dental carriers, you need to evaluate how the market has affected each carrier’s financial situation, claims payments, and customer service. It’s more important than ever to look for flexibility in plan design that allows for adjustments to benefits as employers experience business changes. Carriers should also offer a variety of dental benefit designs at consistent and competitive prices. Comparing plans is challenging due to different coverage levels, features, limitations, services, and requirements. Evaluate plan components to make sure that they deliver on promises and will meet employer’s expectations as well as the needs of employees and their families. This due diligence will pay off in the long run, with client satisfaction and referrals.

Maximizing Opportunities in Uncertain Times

Challenging economic conditions are prompting employers and employees to make new choices. Employers will look to you for expert advice on the many reasons dental insurance is good for their business including employee health and productivity, lower health care costs, and competitive benefit packages to help attract and retain quality employees.

To help employers make wise benefit decisions, you need a thorough understanding of the employees’ dental health needs and expectations. You have an excellent opportunity to enhance relationships with employers by recommending dental benefits that meet employers’ budget challenges, but still provide employees with access to excellent dental care.

Look for an experienced insurance carrier that will be a long-term partner with employers, will maintain quality during market ups and downs, offer flexible plans, timely claims processing, and offer a level of customer support that best serves the needs of employers and employees.
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Karen M. Gustin, LLIF, is vice president-group marketing and managed care for Ameritas Group, a division of Ameritas Life Insurance Corp. (a UNIFI Company), with headquarters in Lincoln, Nebraska. Ameritas is one of the nation’s leading providers of dental and eye care products and services. Gustin’s tenure with Ameritas Group spans 25 years. She is involved with the National Association of Dental Plans (NADP), serving on the board and as the vice-chair of the Research Commission.