Yet, in spite of these figures, many employers still believe that they need the security of an insurance company in order to provide a dental benefit for their employees. By being self insured or self funding you eliminate the insurance company and many of the expenses associated with it, resulting in a savings of 19 -29 percent compared to many fully insured plans. A self funding company has two ways to administer dental benefits. The employer selects or customizes a reimbursement plan that suits their budget or needs. Benefits are typically stated in dollars as a percentage of the expenses incurred, up to the limit of an annual maximum which is determined by the employer.
Employees visit the dentist of their choice and pay for the treatment they receive.
They then present a paid receipt to their employer who reimburse them for all or part of the expense incurred. This method ensures that the plan pays only for actual dental services received, that employees go to the dentist of their choice, and that virtually all of the monies spent go for dental treatment. The variation of the different plans is limited only by the degree of financial commitment the employer is prepared to make. An employer may begin its plan by offering a conservative annual maximum, and then revise the benefits level at any time. As dentists we are constantly sandwiched between the Patient and the Insurance Companies.