Monday, November 21, 2016

HOW DOES YOUR STAFF HEALTH INSURANCE STACK UP?

In the current confusion of “do or don’t” health care coverage, many dentists wonder what colleagues may be doing about health care benefits for their staff members.  Let me share some trends with you, trends noted by experts in the field of practice management; most notably, The McGill Advisory which I highly recommend as an excellent practice management newsletter.

·         The percentage of dentists providing staff health insurance has declined from almost 75% in 2007 to 54% in 2016.

·         Many dentists who have dropped staff health insurance as a benefit  have encouraged staff to get healthcare through state exchanges where government subsidies help pay premiums.  However, with the current bail-out of health care insurance providers willing to insure clients under the Obamacare state exchanges, predictions are that dentists who have dropped staff coverage may choose to resume the benefit in order to attract and retain top-notch team members.

·         Most dentists who still provide this benefit now make it available to full-time team members only. Further, almost 75% of dentists offering the health care benefit do not cover a team member when a spouse’s policy provides coverage.

·         In those practices that still offer coverage, 38% of dentists pay 100% of premiums while 21% pay 50% to 60% of premium costs with the remainder offering some reimbursement that varies widely from 20% to 90% of premium costs.

·         52% of dentists who provide health insurance for staff choose PPO coverage while 15% provide fee-for-service policies.  HMOs have declined to less than 8%.

·         Cost saving measures include: (1) a waiting period, typically 90 days, for new team members before health insurance is implemented,  (2) significant increases in annual deductibles, and (3) switching carriers if a less expensive plan is available.

·         27% of dental practices now have plans with an annual deductible of $2500 while 44% have a deductible greater than $2500.

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