Message Boards
Today's Active Topics Today's Active Cases Browse Forum Categories My Recent Activity My Messages Private Groups My Marked Threads My Subscriptions
Today's Active Images Today's Active Polls Most Active Topics Global Townie Map Advanced Message Board Search Message Board Terms of Use

Dental Offices Canceling Health Insurance

View Comments (1)
Posted: December 17, 2014
Edited by Dentaltown staff
         
Salt Lake City, UT — December 17, 2014 — In years past, dental offices have either eaten the steep rate increases associated with their group health insurance plan, passed them along to employees, or canceled health insurance altogether.

Rick Lindquist says this last option, canceling your employer-provided group plan, is actually the best one.
         
"Dental offices that drop their group plans will save thousands of dollars per person each year," says Lindquist, coauthor along with Paul Zane Pilzer of The End of Employer-Provided Health Insurance: Why It's Good for You, Your Family, and Your Company (Wiley, 2014, ISBN: 978-1-119-01211-5, $25.00, Zanebenefits.com, Healthinsurancerevolution.org/book).

"It's important to protect yourself from the greatest threat to your financial future—our nation's broken employer-provided health insurance system.
         
 "Thanks to the Affordable Care Act, dental offices now have more options," he adds. "There is a way to control what you spend on health insurance coverage while keeping employees happy: Give employees an allowance to purchase their own insurance on the exchange. It provides better choices and is more flexible and cost efficient than any employer-provided version."
         
According to Lindquist and Pilzer, businesses are beginning to change the way they offer employee health benefits. Over the next 10 years, 100 million Americans will move from employer-provided to individually purchased health insurance. And ironically, they believe this paradigm shift will be led by medical experts like dentists.

Dental Employees Are Hurting for Health Coverage
         
So far, Lindquist and Pilzer's predictions appear to be holding true—reports suggest dental staff have come to expect benefits, and dental practices need to offer reasonable, affordable options.

According to Dentistry Network, a leading source of information for dental professionals, 50 percent of dental hygienists get health insurance through a plan provided to a family member. The remaining 50 percent of dental hygienists take advantage of plans offered through an employer (22 percent) or an individual policy (19 percent). The remaining 9 percent of dental hygienists are uninsured. 

"I used to receive more benefits, but when the economy went down, I lost all benefits other than a $100 monthly contribution to the health insurance I purchased," a California hygienist said in her response to a January 2013 survey by RDH eVillage.

Many dentists say they would love to offer health insurance to their staff but simply cannot afford traditional methods. The uncontrollable costs make it too risky.

"Due to our small size and high costs, we do not offer health insurance to employees," says Dr. Ben Russell at Albion Dental Center. "Every year, we review our health insurance options, and every year, the costs go up." 

The Solution: Defined Contribution Model and Individual Plans
 
Let's say that you still offer your staff group coverage but are struggling to pay it. Lindquist and Pilzer suggest you cancel it immediately. Then, replace it with a defined contribution model—meaning each employee buys his or her individual policy from the Health Insurance Marketplace, and the clinic provides a stipend to help pay for it.

The authors say you'll be at the leading edge of a paradigm shift.

"Due to the significant cost advantage for business owners and their employees in the individual market, we predict 60 percent of businesses will eliminate traditional employer-provided health insurance in favor of defined contribution healthcare and individual health plans over the next three years," says Lindquist. 

According to the book, dentists who make the switch will see instant benefits:
• Controllable costs. You (the practice owner) set and fix all costs because you decide how much to contribute. There are no minimum contribution requirements, and the practice can vary employee contributions based on job criteria.

 "Even if you can't cover an employee's entire premium, at least you can offset some of the cost," says Lindquist. "And since most American families earning less than $100,000 a year qualify for subsidies, it's now far easier for your staff to buy their own insurance."
• More time for serving patients. Offering an allowance takes less than five minutes per month. Administering the benefit becomes a payroll function and requires minimal involvement from staff. There are no annual renewals, and employees maintain the direct relationship with the insurance company. 

For employees of dental practices, the defined contribution model works well, too. Here's why:
• Lower costs. With a group health insurance plan, it's not just the employer who pays the cost of the premium—it's the employees too (especially for family coverage). Individual health plans cost 20 to 60 percent less than traditional group plans. Plus, subsidies allow qualifying employees to lower their out-of-pocket costs even more.

 • Ability to customize plans. Each employee can select the health plan that best fits his or her personal needs. Employees can choose the insurance carrier they want, the provider network they are familiar with, and a premium/deductible configuration that suits them.
"Employees can keep their doctor and preferred medical providers if they choose, and the plan is portable and theirs to keep if they leave the practice," notes Lindquist.

 • Familiarity with health insurance. Clinical and administrative staff are often already comfortable working directly with insurance companies and more familiar with health insurance terms than in other non-medical industries.

While pulling the plug on traditional health insurance may sound extreme, Lindquist and Pilzer say dentists who do so are actually giving their employees a reason to smile.

"When you read The End of Employer-Provided Health Insurance, you'll see that there is nothing scary about making this transition," says Lindquist. "The book offers a solution that you can take advantage of immediately.

"Every American, regardless of their health, is entitled to get affordable individual health insurance," he adds. "The model we describe is better than employer-provided coverage for about one-half the price. Quite simply, there's no downside to making the transition." 
 
View Comments (1)
Dentaltown Magazine
May 2024
Dentaltown Magazine May 2024 Read Current Issue Read Archived Issues
Sponsors
Townie Perks
Townie® Poll
Have you ever switched practice management platforms for your practice?
  
Site Menu
Message Boards Magazine Continuing Education Podcasts Blogs Classifieds News Events Townie® Poll Ebooks Townie Choice Awards
Company Info
Contact Us Advertise With Us Howard Farran DDS, MBA Policies and Agreements
Site Help
Sally Gross, Member Services Specialist
Phone: +1-480-445-9710
Email: sally@farranmedia.com
©2024 Dentaltown, a division of Farran Media • All Rights Reserved
9633 S. 48th Street Suite 200 • Phoenix, AZ 85044 • Phone:+1-480-598-0001 • Fax:+1-480-598-3450