COMMENTS
Very interesting and useful analysis of the value of dental insurance. This post will be required reading for all my clients.
When you break down the actually cost of dental insurace like this it makes sense for companies to self-fund or have a voluntary dental program. Companies need to stop buying insurance on fear of what might happen and start looking for alternative solutions.
well done, Russ. The value does seem to vary a lot from one family to another. I'll pass it on. Now, have you run into Transportation Savings Accounts as ee benefits?
Funny how easy it is to assume that dental insurance is a good idea without questioning that assumption. Thanks, Russ - now I can agree with Damian re looking at self-funding rather than blindly following the herd into a dental insurance contract that makes no sense.
Nice to hear from you. A comment on gas you might write about: Divide the present price of gas by your mpg your car gets, and you know the cost of gas/mile. (example: 4.00 $ divided by 20 mpg is 20 cents/mile.) Little cars cost 13.3 c/mile and SUV's or pickups cost 27 c/mile. Now people can figure out what a trip to "the store" costs and decide whether to go there now for every little thing that comes into their mind. Also, this calculation is important for their trip to work and back. We should all learn to calculate our cost/mile versus being upset about the price increases. Knowing "your" cost/mile makes the gas crisis more bearable.
I would like to talk to you some day on the phone. Give me a call.
603-496-5587, cell. Best regards, Lutz
Suppose a person needs some major restorative dental work NOW. Does dental insurance make sense in that case?
Donna, it's a relatively simple math calculation. If the dental insurance has a maximum benefit of $1,000, what does it cost you to buy the dental insurance? And, if you're thinking about a small group dental insurance plan, it may have restrictions on major services for the first year or two. In other words, if there's a two year moratorium on major dental services, you'll have paid in two years of premiums to even qualify for the major dental services. I guess the "bottom line" is "buyer beware."
I am old not as old as you but need some Dental work. I don't need much work know but maybe in the future. What do you think. Paul Ceccarelli
Paul, please read my response to Donna (above). There's another factor to consider with small group dental insurance plans. If you were to install a dental plan, you'd have to provide it for all employees. If you were the only one really needing the dental insurance, the company would end up having to pay for all employees to be on the plan which seems to be an exorbitant amount of money to pay to get $1,000 worth of dental insurance for one employee. If you then opted for a VOLUNTARY dental insurance plan, you very likely will have the moratorium on major services. BUYER BEWARE!
Russ, The blog looks good! Great info on the dental insurance.
Hi Russ, Good information...I am now wondering if paying for a Dental Plan is really worth it. I look forward to your next blog on this topic.
Well, I never looked at it that way. That's for an individual - perhaps the same doesn't hold true for a family. Either way I'm doing the math when I get home and look at the records
Martha, a family might pay $1,500 or so per year for their dental insurance. The American Dental Association (see above link) says that 35% of the population who have dental insurance do not receive dental care or treatment in a given year and of who do receive dental care, most incur dental costs of just less than $300 annually. My role is to provide my clients with ALL of the information so they make more informed decisions. Whatever they decide … dental insurance … no dental insurance … is their decision.
Dental insurance helps you in providing with the require dental care and that too at an affordable
coast without causing harm to your financial position.I will have to think about this myself and see where else I may like to visit. Great post!
Thank you. Everyone is so shocked when I didn't buy dental insurance. Why when it costs so much for so little coverage, especially for pre-existing conditions? I found I was better off combining my HSA with a reputable dental discount card.