Delta Dental’s beautifully updated headquarters in Michigan.
One thing we all have in common is that we carry multiple insurance policies to help protect ourselves from significant or catastrophic events. Some examples of this might be loss of a house due to fire, medical diagnoses like cancer requiring significant treatment costs, or disability. The insurance companies collect relatively small to modest monthly premiums from a large pool of participants and pays out benefits on statistically rare events. This is the original and true definition of what insurance really is.
Dental insurance does not fit into this model. In fact, it really isn’t insurance at all. It is more like a dental “benefit” or bonus.
For one thing, getting a cavity is not a statistically rare event. According to the Center for Disease Control, 85% of adults experience dental decay at some point in their lives. Although the cost of quality restorative dentistry may not always be inexpensive, it does not escalate to the costs of life-saving surgeries, extended medical stays, or replacing a house.
When dental insurance was developed in the 1960’s, it was designed as an employer-sponsored program to help their employees offset costs of regular dental maintenance. But because so many policy holders needed restorative treatment (remember the 85%?), the dental insurance companies had to place a cap on the limit to their pay outs anywhere from $1000-$2000 per year. This model is the only way that dental insurance companies can meet their needs for profitability.
However, as consumers, we are used to the model from our other insurance policies where most things are covered and there are no large “out-of-pocket” contributions on our part. This is not true with dental. In fact, the $1000-$2000 maximums imposed by dental insurance companies have not increased since their original inception in the 60’s!! However, one important fact that people forget is that the cost of training competent practitioners and delivering care increases every year.
As the market drives down prices on many commodities, employers, employees, and individuals expect a price point in dental insurance where they pay less and get more benefits. This simply will not happen. Premiums are going up and benefits are stagnant or declining, in payouts to policy holders (you) and practitioners (us). This is making it harder for dentists to continue to invest in quality products, materials, training, technology, and qualified employees to deliver care.
How does this affect you as the patient? Look to what is happening in medicine right now to get an idea of where it is heading. It translates into the current medical model of extreme volume, where practitioners are forced to see as many patients/hour to help cover the cost of increasing overhead and decreasing reimbursements. How enthusiastic would you feel about your dentist needing to rush through your crown procedure to hop in to see another patient (or two, or three, or four, etc). However, many insurance companies are enjoying record profitability (see photo above).
Another important statistic to consider is that in 2015, 58% of employers plan on dropping dental insurance, leaving employees responsible for paying 100% of their premiums.
To help offset these trends, we are proud to offer a loyalty program that is better than many current dental insurance products on the marketplace. And for those people without dental insurance, it is a no-brainer. Check out our loyalty product called Illumisure.
We are also very proud and excited to be launching a new system and line of products called CariFree to help patients who are at-risk of or already struggling with cavities. This has already been proven to help reduce or eliminate development of future cavities for patients compliant with use of the products, thus reducing treatment time and costs for them. More on this in future blogs, check out carifree.com to learn more.
For anyone who values the highest quality dentistry and the lifetime benefits of a healthy smile, please visit our family practice at 110 Kimball Ave, Suite 230 in the wonderful community of South Burlington, Vermont 05403. Our phone number is 802-864-6264