March 17, 2006, Newsletter Issue #8: A New Trend In Direct Reimbursement Plans

Tip of the Week

Has your companyís CEO purchased a shiny new Harley, gained a new spouse who is 20 years younger, and hired a yoga instructor? If so, then heís also probably thinking about overhauling his businessís dental plan for the new millennium.

The new trend in employer-provided dental health plans are direct reimbursement dental plans. They can be one of the best dental plans for all involved.

The biggest advantages of a direct reimbursement dental plan are that neither employee nor employer is required to pay a monthly premium and the employee may visit any dentist they want.

Direct reimbursement dental plans work by requiring the employee pay the full amount of whatever treatment they have done at the time of treatment, they then receive a receipt and are reimbursed by their employer for a certain percentage of the procedure at a later time. The value of the reimbursement is defined by your particular plan and, as with more traditional employer-offered PPO plans, there is generally an annual benefit cap of around $500 to $2000. So, in the case of those who plan on getting a large amount of dental work done, they might consider paying for a discount dental plan in addition to their employer-provided dental insurance.

If you're an employer looking for a group dental plan, you should definitely consider whether a reimbursement dental plan works for your organization. It can add up to a large savings for your company, while still helping your employees pay for their dental costs.

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