Should Employers Reduce Dental Benefits to Help Cut Costs?
As medical costs continue to climb, many employers are looking for ways to minimize the impact on their benefit plan. One popular tactic is to compensate by reducing the amount of employee benefits and offer fewer choices to their workers. But does it make sense to cut dental benefits in order to save on your overall plan cost?
Dental insurance is still one of the most relatively inexpensive and highly valued benefits available today. In 2006, while healthcare premiums increased by 7.7%, dental costs rose by only 2.7%. The intense competition between dental plan providers has managed to flatten cost increases, keeping them well below those of health benefits, as well as changes in workers’ earnings.
In addition, more employers are realizing that dental benefits can help reduce major healthcare costs as preventative dental care becomes more associated with overall health outcomes. Research suggests that good dental hygiene, including regular dental visits can help detect and reduce individuals’ risk for diabetes, certain cancers, heart disease, and preterm births. When employees take advantage of preventive dental care, their employers can avoid not only expensive dental procedures, but also the high-cost treatments for other medical conditions.
Because of the increasing value of dental benefits, more carriers are offering a combination of medical and dental plans, which will eventually lead to more integrated coverage in the future. In addition, many carriers are trying to create public awareness of the benefits of oral health by initiating intervention programs for high-risk members.
With this in mind, employers may want to think twice before cutting their dental benefits to save money. Continued promotion of oral health can help employers differentiate themselves in terms of recruitment and it can help create healthier employees in the long run. For more information this subject, please click on the links below.
Questions or comments about this article? Email us at comments@hcwbenefits.com.
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June 8, 2007
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