According to the American Dental Association, only 55-60 percent of people who have dental benefits in this country ever visit a dentist in any given year. Dental utilization is very predictable. If an employer wants to know what a potential Direct Reimbursement plan might cost, CDA offers cost projections using a formula based on national averages that takes into account individual factors of a company. Direct Reimbursement simplifies the way benefits are paid, so most employers can comfortably administer a plan themselves. In many ways, DR is very similar to travel expense reimbursements for employees who travel on company business.
Employees turn in receipts and are reimbursed for their expenses.
Experience has shown that only about one man-hour per week is required to administer a plan for every 100 employees. Computer software from private companies is also available for a fee to assist with plan administration. While most companies are able administer a Direct Reimbursement plan themselves, some may simply choose not to do so. In such instances, CDA endorses a third-party administrator with extensive experience in administering DR plans who would gladly assume those responsibilities for a monthly fee. Q. My employees live from paycheck to paycheck.