Healthcare costs are high, with dental care expenses following suit. According to Authority Dental1, the average cost of a dental crown ranges from $800 to $2,500. While offering a primary dental policy can help employees cover these types of expenses, they may still have to pay a good portion of the bill. By offering supplemental dental insurance, you can help your employees save money on these costly procedures and maintain good oral health.
In this article, we'll go over how you can offer supplemental dental insurance to your employees.
Takeaways from this blog post:
- Supplemental dental coverage gives employees peace of mind by helping them pay for out-of-pocket costs that a primary policy may not fully cover.
- Employers can offer supplemental dental coverage through a supplemental policy or a dental discount plan, sometimes called a dental savings plan.
- An HRA is an affordable option for employers who want to offer supplemental dental coverage to their employees.
Primary dental insurance is the main source of coverage for dental care expenses and typically provides a broader range of coverage. Supplemental dental insurance complements primary dental insurance. As a secondary plan, it can help cover out-of-pocket expenses that the primary insurance plan may not fully cover.
For example, if a procedure costs $800 and a primary plan covers only half of it, a supplemental plan can help cover the remaining costs. This dual coverage benefits individuals who need additional coverage for specific dental procedures or services.
Dental coverage differs depending on the policy and insurance company. But they generally cover similar expenses.
Typically, a primary dental plan covers2:
Most supplemental insurance policies generally cover basic treatments like checkups, X-rays, and cleanings.
Depending on the type of plan, policyholders may also have full or partial coverage for:
Most insurance plans don't cover cosmetic treatments, so your employees will need to pay out-of-pocket for procedures like teeth whitening and veneers.
Here are a few ways that employers can offer supplemental dental insurance to their employees:
Employers can partner with a dental insurance provider to offer supplemental dental insurance to their employees. When you shop for plans, it's important to compare coverage options like health maintenance organization plans (HMOs), preferred provider organization plans (PPOs), and indemnity plans based on monthly costs, deductibles, and covered services to find the best fit for your employees. By working with a reputable insurance provider, employers can ensure that their employees can access quality dental care at affordable rates.
Dental discount plans, or dental savings plans, are another option for employers looking to provide supplemental dental insurance to their employees. These plans offer discounted rates on dental services at participating dentists, making it more affordable for employees to receive the care they need.
Dental discount plans3 require employers or employees to pay an annual membership fee to participate. They can pay it as a lump sum or split it into monthly installments, then pay out-of-pocket for discounted dental services throughout the year.
Another option for employers is to reimburse dental expenses your employees incur. This can include reimbursement for routine cleanings, fillings, and other dental procedures, helping employees cover the cost of their dental care.
With a health reimbursement arrangement (HRA), employers can easily reimburse their employees for more than 200 eligible expenses. This includes dental plan premiums or dental care costs. An HRA can also reimburse dental veneers with a doctor's note if the service is medically necessary.
Unlike the previous options, HRAs cover more than dental treatments. You get more bang for your buck with an HRA since they allow you to reimburse your employees for medical expenses. This makes it an easy and affordable way to provide comprehensive coverage. With an employer-funded HRA, you can reimburse employees for their vision care, medical services, emergency treatment, mental health counseling, and monthly premiums for individual health insurance policies, depending on the type of HRA you offer. You simply set an allowance using tax-free money and reimburse your employees up to that amount.
You can offer the following HRAs to your employees:
Dental health is an important aspect of overall well-being, and having access to affordable dental care can help employees maintain good oral health and prevent costly dental issues in the future. Plus, offering a dental benefit can help attract and retain top talent at your organization.
According to PeopleKeep's 2024 Employee Benefits Survey, dental insurance ranked as the second most important benefit for employees, following health benefits. Results show that 91% of employees see dental benefits as important, yet only 53% of employers offer them. Providing dental benefits can help you stand out and improve employee satisfaction.
Supplemental dental insurance policies can provide additional coverage for employees who may need orthodontic treatments, cosmetic procedures, cleanings, and dental exams beyond what's covered by their basic dental benefits. Employers can easily reimburse employees for their dental care costs with an HRA, allowing employees to tailor their dental coverage to their individual needs.