Are Dental Benefits Getting Lost in the Healthcare Reform Shuffle?
Group dental coverage has always been one of the more highly-valued benefits employers can offer. According to a 2009 MetLife study of employee benefits trends, 69% of employees valued dental and other ancillary benefits in contributing to company loyalty, which is slightly under the 75% valuing medical benefits but easily surpassing the 57% valuing career advancement opportunities. In addition, a study by the U.S. Bureau of Labor Statistics found a 79% take-up rate among employees who elected dental coverage compared with 76% for medical coverage. Dental benefits have also proven to be more stable and cost-effective than medical benefits. However, when it comes to the discussion on healthcare reform, many in the industry are becoming concerned that group dental benefits are not only taking a back seat to medical insurance, but may actually be lost altogether in the final plans for reform.
Actually, members of Congress have made efforts to ensure dental benefits become a part of the big reform picture, citing statistics that some 82 million adults and 26 million children currently lack dental coverage. Original drafts and other iterations included mandated dental care provisions for children and cited the importance of disease prevention, safety net programs and changes in the dental workforce and public-health infrastructure.
But some claim that the most recent versions of the healthcare bill have some unintended consequences that could put group dental benefits at risk. The House bill actually bundles group medical and dental benefits together in the proposed health insurance exchange and requires that dental coverage only be made available through a medical insurer. After five years, the same requirements would be set for essential benefits outside the exchange.
The bundling of benefits in this manner is considered by many to be a threat to the stand-alone dental insurers, which administer 97% of the country’s employer-sponsored dental benefits covering roughly 128 million Americans. According to Evelyn Ireland, executive director of the National Association of Dental Plans, this would cause a major disruption within the industry as well as for the patients who already use these benefits. Ireland does note, however, that because most medical carriers are not prepared to offer dental benefits, they would likely subcontract to dental carriers – even though this would inflate administrative costs for both.
Another concern is that the legislation is only focusing on dental plans for children while adult coverage would be handled differently. This may require that parents who already have family coverage to then purchase two separate policies – one for themselves and one for their children.
Supporters of the bill, however, argue that the intent is to ensure that all children have quality dental coverage, and that the “bundled” approach is best because it would provide an affordable option for children whose parents cannot otherwise afford a stand-alone policy. House Committee on Education and Labor Press Secretary Aaron Albright states that dental insurers can still flourish because the legislation does not prohibit them from managing dental plans for other insurers.
Still, many in the industry continue to feel that dental insurers should be “brought to the table rather than put on the menu” when it comes to healthcare reform. The legislation remains a long way from the President’s desk, and there is still hope that the dental industry’s track record in terms of cost-effectiveness can help secure meetings with key legislators. Either way, it looks to be a struggle to secure the group dental plan’s place in tomorrow’s healthcare reformation.
For more information, please click on the following links:
Pulling the Teeth Out of Dental Plans
Putting Teeth in Health-Care Reform
Report Spotlights Dental Uninsured Problem
Is Dental Insurance an Unseen Casualty of Health Care Reform?
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Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.
November 20, 2009
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