The advantages of cost effective self-funded dental benefit plans are numerous for businesses that fit the appropriate profile. This sheet is provided to assist benefit managers, human resource professionals and insurance personnel in developing an understanding of how a plan would fit their business.

DENTAL BENEFIT FACTS:

Dental care utilization is routine, predictable, low cost and noncatastrophic.
Conversely, medical benefits are high risk, unpredictable, catastrophic and very expensive. Therefore, dental should be self-funded and medical should not be self funded.

Most Americans do not have dental insurance and must pay for treatment.
This has forced dentists to remain competitive to attract their patients and keeps dental fees in check. Cost containment for dental plans begins with the patients exercising their right to seek care from their chosen provider and receive the treatment they authorize.

Dental treatment in the 1990's may be summarized by the fact that 49% of children have no dental decay.
Preventive measures by dentists and routine care have successfully changed the patterns of decay in the population. Dental plans that reward preventive care and allow patients to receive the individualized care that keeps them healthy will adapt best to the future.

Of those individuals with dental benefits, up to 40% won't use them in any year and the insurance industry does not return that excess premium to you.
Only 5 to 7% of dental plan participants will reach their annual maximum each year. Up to 75% of the dental claims processed are less than $200 per person per year. The average employee uses about $300 annually on dental care. Reducing plan costs through limited access and poor coverage passes expenses on to patients and leads to dissatisfaction.

Patients prefer to chose their own dentist.
Diverse employee populations require dental benefits that allow them to seek providers with similar cultural background. Employers with geographically separated offices need the security that their employees have local providers. Excellent, cost effective dental benefits can really make a difference in your entire benefit package.

With self-funded plans, benefits are paid only after the treatment has been completed.
Any unused plan funds are retained by the plan and may be used to improve other benefits. Monthly costs are limited to claims cost and simple administrative fee.