As an example, one very popular program covers only one exam per year. Dental programs should cover two cleanings and two exams per plan year. No employer contribution is required toward the premiums. Some employers will subsidize the cost but it is never required. These costs are reduced by the savings the employer receives as a result of the reduced payroll taxes through Section 125 .
Many programs look the same on the surface but have premiums that are vastly different.
Examine how the carriers are reimbursing the dental providers. Well-designed indemnity plans reimburse the dental provider based on reasonable and customary charges, not a fee schedule. As a result, virgin voluntary dental programs should be designed as pooled risk products. Voluntary dental plans that are experience rated tend to incur excessive premium increases. Pooled risk products can expect normal dental trend.