Dental Plans for Small Businesses – Everything Small Business Owners Need to Know
Dental treatments are evolving, and you want to ensure your plan covers new technologies. It is also important to understand your renewal projections and how they compare to your previous year’s claims data. Avoid tying your dental insurance to your medical plan with a standalone best-in-class solution.
Cost
There are a wide range of small business dental insurance options available. Choosing the best one for your employees requires careful consideration and comparison, including ratings, cost, coverage, customer service, and claims history. Typically, small business dental plans have a deductible, the amount an employee pays for services before the insurance company starts paying.
Preventative care, such as routine cleanings, may be covered without a deductible, while other services require that the deductible be met before benefits begin. A large number of providers offer group dental insurance. Some have a limited network, while others have a large national network with plans varying by state or federal employee division. A good small business dental plan provides various coverage options that decrease employee costs. For example, a Preferred Provider Organization (PPO) plan allows members to choose any dentist they wish but has lower prices for in-network dentists. Many programs also let unused annual maximums roll over from year to year. Other options include a Health Maintenance Organization (HMO) or traditional indemnity plans.
Coverage
Dental coverage helps offset the cost of care and is important for employees, but small business owners must balance costs and benefits when choosing a plan. The best programs provide cost savings and access to quality providers. They also have features that make it easier for employees to manage their claims and access information. Traditionally, the types of group dental plans that small businesses choose include Preferred Provider Organization (PPO) plans, Health Maintenance Organization (HMO) plans, Indemnity plans, and discount dental plans. Each type of plan provides a different level of coverage.
Indemnity plans pay the dentist for each procedure and then reimburse the employee for some of the cost. These plans may have deductibles or maximums. PPO plans provide flexible coverage with the ability to select any provider within the network. These plans have a lower rate structure and typically offer a maximum rollover option for unused annual benefits. Other options include DHMOs, which provide limited coverage with a primary care dentist selection and referral requirements. Discount dental plans or capitation programs pay contracted dentists a fixed amount every month for each enrolled family or patient.
Network
There are several dental insurance providers and plans to choose from. The best one for your company will depend on the needs of your employees, your budget, and whether you want to offer a traditional dental insurance plan or a dental savings program. When selecting a provider, it is important to look at ratings and reviews. A good reputation for customer service and value will ensure a positive experience for your employees.
A traditional insurance plan typically has a deductible and an annual maximum. It may also have a copayment or coinsurance and require you to visit in-network dentists. Dental discount plans don’t have these limitations and can be an excellent alternative to traditional insurance. Other types of dental coverage include dental HMOs, which reimburse dentists a set amount per enrolled patient. These programs may have a point-of-service option that allows patients to use out-of-network dentists, but they will receive reduced benefits.
Timing of Care
The type of dental plan your company selects will significantly impact when employees visit the dentist. Some plans offer a preferred provider organization (PPO), similar to health insurance PPOs, that provides a network of dental providers with discounted service rates. If an employee chooses to see a non-network dentist, they may pay higher out-of-pocket costs and have to file a claim for reimbursement. Other dental plans include prepaid/dental health maintenance organization (DHMO) and traditional indemnity.
Indemnity plans, or fee-for-service, require a payment to the dentist at the time of service and reimbursement after the procedure. They typically have a flexible list of dentists to choose from but often require a copayment and have annual limits. Lastly, a group dental savings plan offers a low-cost alternative to traditional insurance. Unlike conventional insurance, these plans don’t have deductibles, annual limits, or claims to submit. These plans work by allowing members to use the group’s buying power to receive discounts for dental care at participating dental professionals.
In addition to cost and coverage, dental plans may offer various other features to help business owners determine which plan best suits their employees.
Additional Features
e deductibles, annual maximums, copayments, and coinsurance. A yearly maximum typically refers to the amount of money an insurance provider will pay for covered services within a single plan year. This maximum is deducted from each claim submitted to the insurer. Once the annual maximum is reached, the patient is responsible for all additional costs until the next plan year.
Providing your employees with a high-quality dental benefit doesn’t have to break the bank, especially since many small businesses don’t need traditional insurance. Instead, consider a voluntary benefits solution that allows employees to purchase affordable coverage with pre-tax payroll deductions. This can be a great way to boost employee morale without the cost of traditional dental insurance.
