An increased number of U.S. employers are offering separate dental plans than ever before, according to the National Association of Dental Plans (NADP) 2011 Group Purchaser Behavior Study.
The study findings also reveal that more than 80% of all companies surveyed are likely to invest in or will continue offering health benefits, rather than pay a $2,000 penalty to the U.S. government when the Affordable Care Act is implemented in 2014.
The number of companies offering dental benefits to employees has significantly increased compared with NADP's previous surveys in 2005 and 2008. Increases in the percentage of employers offering dental benefits are noted in every geographic region and all size categories -- most notably with companies with 25 to 100 employees.
Of the companies offering dental benefits, there was an increase in dental preferred provider organization (PPO) products and declines in dental HMOs, traditional indemnity plans, and discount dental plans. Since 2008, employers are also asking employees to contribute more to their own dental coverage.
Additional key findings include the following:
- Dental coverage is purchased as a separate policy most often from a standalone carrier (59%) with a decline in dental policies purchased "in a package" from a medical carrier and its dental affiliate, subsidiary, or partner.
- In selecting a new dental carrier for dental coverage, cost is the most important factor.
- The most important reasons for companies to consider offering dental benefits are employee requests, the fact that dental health impacts overall health, and affordability.
- Most employers (96%) believe dental benefits are an essential or a differentiating factor in the recruitment and retention of employees, consistent with data from 2008.
The study is available for purchase on the NADP website.
