The driving forces behind choosing a dental plan provider
Company paid dental insurance was one of the few areas of healthcare cover that continued to grow through the last recession, albeit more slowly, but its upward momentum returned under more favourable growth in recent years.
Employee funded dental cover has also been popular recently with companies of variable size, underpinned by an expansion of flexible benefit schemes across employers.
The factors that influence HR and reward managers
So the evidence suggests that the corporate dental insurance market is growing but when it comes to choosing a dental plan provider, what factors are influencing HR and reward managers in their decisions?
Certainly, it appears that price has usually represented the main driving force behind choice of corporate dental plan provider, but there are signs that things could well be changing. Employers are beginning to look beyond price, and focus more on what else brokers and providers can bring to the table with regards to wellbeing and preventive solutions and, crucially, return on investment.
The broker service
The importance of the broker service should not be underestimated, and according to Denplan’s recent research the most important aspect of the broker service cited by those who use a broker is the ability to negotiate deals/rates, followed by the provision of expertise not available inside the company, closely followed by keeping them updated on changes in the market according the the Denplan Corporate Decisions Makers Survey 2016.
This suggests that more companies are looking to their brokers for forward thinking and proactive advice in helping them to select a provider.
Price, product, choice and customer service
What about other factors influencing employer’s choice of dental plan provider? Research shows that price continues to be the main factor, with 61% of employers saying that price influences the choice of dental plan provider, followed by simple product (40%), choice of plans (38%) and good customer service (37%).
Access to a provider’s network of dentists also appears an important factor when selecting a dental plan provider, with near to a quarter (24%) saying this is important according to the Denplan survey.
When choosing any benefits provider, of course there will be a wide range of factors involved in making any final decision, not least of all what end goal the company wants to achieve by introducing that benefit and how that provider is best suited to fulfil those requirements.
When it comes to a dental plan provider, it’s important that other factors are also considered such as specifics around product design, with careful attention being paid in particular to benefit limits for employees and their dependents.
It’s also worth considering the other core benefits offered by a provider such as the extent of coverage (is it worldwide dental cover for example), are there discount networks available, the ease of the claims process for employees and the communications support available to help increase take up and understanding around the health benefits of a dental plan.
This article was provided by Denplan.
Supplied by REBA Associate Member, Simplyhealth
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