Pricing and Costs of Dental Health Insurance

Several factors can impact the pricing and costs of dental health insurance

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.

 

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.
Try: 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.
Try: 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.
Try: 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.

 

• 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.

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