Tim Wiedman Associates
--Where Serving you is our Number One Priority--
Tips and Tools
Should you include dental insurance in your company benefits, and if so, how is that best done?...
We really consider dental insurance to be a benefit program and not really insurance in the true sense of the word. Why? Because there is no real catastrophic event possible. Now, we realize that for some people, a $1200 dental bill would seem catastrophic, but let's be honest, it just isn't. For this reason, insurance companies love dental insurance; there is no way to lose money on it and very profitable. This, notwithstanding, it is very popular with employees, and more requested than any other benefit, including disability insurance. But what is the best way to provide it? If you are a larger employer, this is a perfect benefit to provide with a self funding or partially self funding vehicle, especially if you administer the plan in house. There is some work involved, but you can save a great deal of money.
But suppose you are a smaller employer? If you are in a highly competitive industry then providing dental to your employees may be good business sense. If not, you may want to consider a voluntary program. Voluntary programs allow a plan to be set up without employer contribution. The advantage to the employee is the availability of group rates; the advantage to the employer is that it need not contribute. This works out especially well if you have a Section 125 Premium Only Plan in place (see our other discussion on Section 125).
If you are a larger employer and would like more information on the self funding options, or a smaller employer and would like more information on a voluntary dental program, please Contact Us
We really consider dental insurance to be a benefit program and not really insurance in the true sense of the word. Why? Because there is no real catastrophic event possible. Now, we realize that for some people, a $1200 dental bill would seem catastrophic, but let's be honest, it just isn't. For this reason, insurance companies love dental insurance; there is no way to lose money on it and very profitable. This, notwithstanding, it is very popular with employees, and more requested than any other benefit, including disability insurance. But what is the best way to provide it? If you are a larger employer, this is a perfect benefit to provide with a self funding or partially self funding vehicle, especially if you administer the plan in house. There is some work involved, but you can save a great deal of money.
But suppose you are a smaller employer? If you are in a highly competitive industry then providing dental to your employees may be good business sense. If not, you may want to consider a voluntary program. Voluntary programs allow a plan to be set up without employer contribution. The advantage to the employee is the availability of group rates; the advantage to the employer is that it need not contribute. This works out especially well if you have a Section 125 Premium Only Plan in place (see our other discussion on Section 125).
If you are a larger employer and would like more information on the self funding options, or a smaller employer and would like more information on a voluntary dental program, please Contact Us
