- Would your company save money if you reduced premium costs?
- Would your company be more productive if you reduced employee downtime?
- Would your employees be more satisfied and loyalty if they had expanded benefits?
In today’s marketplace many companies are experiencing:
- Higher dental premiums with lower benefits.
- Less flexibility and service from insurance companies.
- Overcharging by some network dental offices.
The best two ways of increasing benefits while lowering premium costs are:
- Direct Care or an onsite dental office
- Self funded dental insurance
Dental insurance companies keep between 30-35+% of premiums collected to cover administrative fees, maintaining the dental network, and reserves. If anything is left over that is their profit and not returned to the company or used to expand coverage. As a contrast, self-funded dental plans spend around 15% of premiums on administrative fees. This is a 15-20% savings to the company.
Direct Care also allows a company to expand their services and increase access to care for their employees. This has the added benefit of saving employees from having to go off site and also to multiple practitioners for their dental care. Employee downtime is reduced.
Another reason to consider direct care and self funded dental insurance is the potential in reducing medical costs by expanding dental benefits. As an example, research has found that early treatment of the inflammation that causes gum disease reduces medical costs for diabetes, heart disease and strokes.
In addition dental benefits are surprisingly important to employees. According to the 7th Annual MetLife Study of Employee Benefits Trends, 69% of employees said dental benefits were important to their loyalty, and they are the fifth most popular benefit among employees, behind only medical, 401(k)/403(b)/457, vacation, and prescription drug coverage.
Many employers are looking for ways to save money without having to cut dental benefits. The best ways of accomplishing one or both of these goals is direct care and self funded dental plans. Call Dr ORielly to discuss or to do a CBA for your company.