Since 2001, premiums for PPO and indemnity dental plans have risen as much as 56%, according to the National Association of Dental Plans. That leaves many small businesses unable to afford coverage. While more than 90% of companies with 1,000-plus employees offer group dental benefits, as many as 60% of companies with 6 to 24 employees do not.

This presents a need for an alternative plan to fill the void left by surging dental premiums – a plan that allows smaller companies to offer group coverage while keeping their spending under control.

Insurance providers looking to help small businesses solve this dilemma have turned to the past, dusting off a tried-and-true concept: the scheduled reimbursement dental plan.

Group scheduled reimbursement dental plans often cost employers significantly less than PPO or indemnity plans set up to pay based on reasonable and customary (R&C) charges, since they are not subject to inflationary trends.

With a choice of benefit levels, employers can select their schedule based on the company’s budget and specific needs. The schedules can be adjusted or maintained as desired, meaning lower group premiums and higher plan satisfaction for employees.

An employer can couple the scheduled plan with a PPO as a “buy-up” option to provide even greater flexibility for employees who might want a more comprehensive plan. Any way you slice it, the employer’s cost will always be lower than the traditional dental premium … and stay that way.

Employees benefit because there are no network restrictions, no waiting periods or “guesswork” as to what the insurance company pays per procedure. Even before a procedure is started, the employee can “negotiate” with the dentist about the balance due.

Since scheduled reimbursement dental plans offer savings and cost stability for a company, while giving employees access to quality dental care, they present brokers with an excellent opportunity to increase their dental plan portfolios.

Reimbursement plans are easy to understand, include an orthodontia benefit and encourage the insured to be a savvy consumer of dental benefits.

Jamie Black is an MGA for AIG‘s Group Benefits Portfolio and can be reached at 610-292-9200 or by email.