Dental health insurance is a contract to manage a person's dental health. Dental insurance plans can vary widely because this contract involves the employer or the employee, the dentist who is providing the care, a dental insurance provider and often an administrator who is responsible for the processing and payment of claims.

As a business owner, you have to decide whether or not to offer your employees a dental insurance plan. You have to research business dental insurance plans and learn about dental health insurance basics to better understand the differences in policies and to determine which type of policy would be the most economical for your organization yet still provide appropriate benefits for your employees. While evaluating dental insurance for small business, here are some things to consider:

1. Research the different types of business dental insurance plans.

2. Learn about the benefits offered in dental insurance coverage.

3. Evaluate the available dental insurance providers.

4. Discuss your organization's dental health insurance needs with an adviser.

Action Steps
The best contacts and resources to help you get it done

Understand the difference among small business dental insurance plans

There are several different types of dental health insurance plans, but there are four kinds that are most commonly purchased. Direct reimbursement programs, indemnity programs, preferred provider programs and capitation programs are all types of dental insurance for small businesses. You should learn more about each type of dental coverage and decide which might have the best options for your company.

I recommend: The American Dental Association offers a concise definition of the major types of dental health insurance available for purchase. Cleveland Clinic has a complete discussion on dental health insurance plans.

Understand the definition of terms and benefits available in dental insurance coverage

There are several terms that can help you understand what services your organization would get from dental insurance providers. Understanding the meaning of terms such as predetermination of costs or annual benefits limitations can help you make decisions about what type of dental insurance plan to choose for your business.

I recommend: WebMD contains a concise list of dental insurance terms. DentalPlans.com lists a clickable list of glossary terms where you can look up any terms that are unfamiliar to you.

Learn about the different kinds of dental health insurance providers on the Internet

There are several types of dental health providers with information on the Internet that offer small business dental insurance plans. Large insurance companies typically have divisions that offer dental insurance. There are also smaller firms that specialize in dental health coverage as well as discount dental health providers that can be found online.

I recommend: On its website, Humana offers a choice of individual dental health coverage, dental insurance for self-employed persons or dental insurance for small business. EHealthInsurance Services allows you to enter some information into a form and get dental health insurance quotes and other information. HealthCare.com lets you to find plans in your area and compare services.

Learn more about dental insurance providers through a consultant

You can get specific information about dental coverage through an adviser instead of the Internet. An adviser can look at what specific dental coverage you want for your organization and help you compare dental insurance plans and obtain dental insurance quotes. The consultant may also be able to help manage the dental insurance plan if your purchase one.

I recommend: TriNet Total HR Services offers an option to outsource benefits administration and assistance. HR-Guide.com lists multiple benefits consultants and administrators who can help create your dental coverage plan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When researching dental insurance plans, make sure that you consider self- employed dental insurance plans as well as individual dental insurance plans. Depending on the size of your organization, you may find a less expensive solution, such as contributing to individual dental health plans.

Affordable dental plans can seem out of reach for small businesses, which often don't have the numbers of eligible employees needed to qualify for group discounts. Yet dental benefits are consistently cited as one of the most sought after employee benefits. If you look hard enough, you'll find reasonable options.

Small businesses have three basic options when it comes to providing dental benefits:

1. Bargain shop for traditional dental insurance
2. Set up a company-funded dental plan
3. Look into dental discount plans

Action Steps
The best contacts and resources to help you get it done

Shop for low premiums on good plans online

With services that allow you to search for the best rates online, you don't have to go through multiple local sales representatives for quotes.

I recommend: ehealthinsurance.com lets you search for a good plan with a premium you can afford based on your company's size and employees' personal information.

Look into benefit packages offered through buying clubs

Buying clubs that you use to purchase other items for your business are an often-overlooked place to find health and dental benefits as well.

I recommend: Costco offers dental insurance benefits to Executive Members in California, Nevada, Oregon, Washington and Hawaii. Sam's Club's Health Allies plan offers discounts on dental care free for its Plus members and at a low monthly rate for its Business Advantage members.

Offer discount plans instead of traditional insurance

Signing up for a discounted fee-for-service plan means no deductibles or claim forms for employees. These plans aren't insurance, but they do offer discounts on dental and orthodontic services from participating providers.

I recommend: Dentalplans.com can match you with a dental discount plan that works for your business.

Set up your own direct-reimbursement plan

Direct reimbursement (DR) dental plans are benefits made simple. DR is a self-funded program in which your business reimburses employee dental expenses based on a percentage of dollars spend. No insurance companies; less paperwork, employees choose any dentist, and you can get tax breaks, too.

I recommend: The American Dental Association (ADA) offers detailed help and information on setting up such a plan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Look at your local Chamber of Commerce and other business organizations to see if membership includes discounted dental benefits or the ability to buy into a group insurance plan.
• •  Look at deductibles, caps, and co-pays carefully when choosing a plan for your employees. You may be able to get a more affordable dental plan with a slightly higher deductible or co-pay.
• •  Consider having a company meeting to discuss employees' individual dental needs. You may be able to choose a plan that works for the majority of workers.

Providing dental health insurance for your employees may seem like a daunting and expensive task. However, business dental insurance plans cost approximately 10 percent of the cost of a small business health insurance plan. Offering dental coverage for your employees could improve your organization's retention rates and improve your ability to attract exceptional employees.

The costs of dental health insurance plans vary, but can run from $800 to $1,500 a year per employee, with you as the employer picking up between 25 to 50 percent of the monthly premiums. However, the actual costs for group dental insurance will vary depending on the number of employees, the specifications of the plan, employee contribution and the cost limitations you select. When evaluating small business dental insurance for your employees, here are some things to consider:

1. The size of your company will influence the cost and your eligibility for business dental insurance plans.

2. Prices will vary with different types of dental insurance plans.

3. The amount that employees contribute to purchase dental insurance coverage will impact the overall cost of the small business dental insurance plan.

Action Steps
The best contacts and resources to help you get it done

Understand that cost of business dental insurance plans depends on company size and employee health

The cost of small business dental insurance depends on the size of your organization. Depending on your state laws, your company may have to undergo an underwriting check in which habits of your employees may impact your dental insurance quotes. If you have employees with health issues, your insurance rates may be higher.

I recommend: On the U.S. Small Business Administration's website, you can search for local SBA offices where you can get the local statutes for your company. You can also call insurance brokers such as eHealthInsurance Services to determine if your firm is eligible for a small business dental plan.

Understand that pricing plans from dental insurance providers vary

The most expensive dental insurance plan is direct reimbursement, which requires that your firm have a pool of money for dental coverage. You may not know the cost for dental coverage for the year ahead of time. This plan would be closer to the $1,500 end of the range. The least expensive small business dental insurance plan is an indemnity plan, where your organization pays premiums to dental insurance providers, which then pay the treating dentists. Indemnity plans are more straightforward for your firm; however, the costs for your employees may not be. There are other types of dental insurance plans such as dental insurance for self employed and managed care plans that can also lower your company's dental insurance costs. These plans would be closer to the $800 end of the range.

I recommend: The American Dental Association publishes a booklet for employers about direct reimbursement dental insurance plans that you can download. Allinsuranceinfo.org allows you to learn more and obtain a quote for your company. Sign up for an email course about finding dental health insurance and get quotes at Health Insurance In-Depth.

Recognize that the amount of employee contributions lowers the cost of dental coverage for your firm

One way to manage the price of small business dental insurance plans is to manage employee contributions. You can increase the amount of monthly contributions or you can adjust the amount of your employees' co-pays. You should get several dental insurance quotes with varying levels of employee contributions or varying amounts of employee co-pays to get the best price for your organization. For example, increasing the employee co-pay from $25 to $35 would lower your overall costs.

I recommend: Companies such as United HealthCare Services allow you to find a broker to specifically discuss your firm's needs. You can get direct quotes online from multiple providers at BuyerZone.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that whatever your company pays for dental health insurance is tax deductible.
• •  Determine if all employees want to participate in a dental health plan. Their nonparticipation could change your firm's costs. For some employees, self employed dental insurance may be less expensive than a company plan.

If you're considering offering your employees dental health coverage, you may want to familiarize yourself with dental health insurance key terms. Dental health insurance offers many types of plans, such as discount dental plans, indemnity plans, capitation programs and schedule-of-allowance programs. There also are other dental health insurance key terms, such as predetermination of costs and annual benefits limitations. Taking the time to get to know many of these terms won't leave you down in the mouth when it comes time to research dental health insurance.

Action Steps
The best contacts and resources to help you get it done

Dental indemnity plan

Often referred to as traditional dental health insurance coverage, dental indemnity plans allow participants to visit any dentist of their choice. While deductibles apply, there are many benefits to dental indemnity plans, such as 100 percent coverage for preventive care, no required referrals and higher insurance payments for 'usual and customary' charges.

I recommend: DentalInsuranceHelper.com provides a detailed explanation of dental indemnity plans, including how they work, what they do and don't cover, and the advantages and disadvantages of this type of program.

Dental discount plan

In a dental discount plan, participants visit a dentist who has agreed to offer services for a discounted price. From cleanings to dental X-rays, dentists contract to perform dental services at a pre-arranged cost. There are no deductibles, waiting periods or uncovered pre-existing conditions.

I recommend: Find a detailed description of how dental discount plans work at Dental Related Internet Resources.

Capitation dental plan

A capitation dental plan is essentially a dental health maintenance organization (HMO). Under this plan, a dentist contracts to offer pre-determined dental services to participants and is paid a monthly amount regardless of the services provided to each individual participant.

I recommend: Animated-Teeth.com offers a thorough description of capitation dental plans, including the good and bad points of this program.

Direct reimbursement

A direct reimbursement dental health insurance plan reimburses participants on the amount they spend on any dental service rather than covering the type of service performed. As with indemnity plans, participants can go to the dentist of their choice.

I recommend: Allinsuranceinfo.org gives a full explanation of direct reimbursement dental health insurance plans.

Usual, customary and reasonable (UCR)

In dental health insurance, usual, customary and reasonable (UCR) is used to determine how much of the cost of a dental service an insurance company will agree to pay. This is usually a percentage of a 'usual and customary' amount determined by the insurance company. UCR figures vary from one company to another and there is no federal regulation of these fees.

I recommend: The American Dental Association (ADA) has a brief, but informative, description of usual, customary and reasonable (UCR) in regard to dental health insurance.

Schedule of allowance

In schedule-of-allowance dental health insurance plans, a list of allowable dental services and fees is followed. The fee may or may not reflect the dentist's charge for any particular service. Any difference between the allowable fee and the dentist's charge is paid by the participant.

I recommend: You'll find a detailed definition of schedule of allowance under the heading Calculating Payments at the Web site of the California Dental Association.