Self-Insurance: The Secret to Better Dental Benefits

The post explains why it is important for businesses to consider dental insurance when it comes to being a superpower. If you are not familiar with self-funding insurance, Level is building products that are based on the idea that self-funding insurance can unlock better outcomes for both employees and employers.

What’s self-insurance?

Let’s first tackle the basics of self-funding insurance, which simply means that instead of purchasing a policy from an insurance company, you pay for claims incurred by your employees using funds from your own company.

Large companies, where over 90% of the workforce consists of individuals employed in self-funded plans, favor this model because it allows them to retain unused benefits, resulting in cost savings.

When a business has a large workforce, they are able to self-fund their medical plans because they know that not all employees will require expensive care. This works in favor of companies that have thousands of employees who may not have a catastrophic incident that could cost millions of dollars in medical costs. Adding reinsurance to their self-funded plan is why even large employers put a cap on spending. We are aware that all people get sick from time to time.

The independently financed healthcare scheme is overseen by a multidisciplinary group. Actuaries, financial analysts, attorneys, and benefits executives also collaborate behind the scenes for prominent corporations. Numerous staff members and advisors are also engaged. Isn’t it intricate?

Dental is a different ballgame

Dental costs are much more predictable. Certain services (the annual max) are covered up to a certain point, usually a few thousand dollars. Even if an employee needs a lot of work done, the costs for the employer remain consistent. So, the employer needs the employee to consistently work a lot. Typically, the max benefits with a plan that has a $2,000 annual max and 300 employees would not see claims spending fluctuate more than 5% year over year. The estimated annual costs can be within $10,000 to $20,000.

The insurer ends the plan year by pocketing all unused benefits dollars. They add that to increase profits and fund reserves, in order to fee risk. Then, they charge extra little fees for taxes and administrative costs. When estimating the costs of claims for a given population, the insurance company will consider what they.

Some companies want dental plans that help them compete by offering perks like teeth whitening and adult orthodontia as additional benefits. There is no exception when it comes to dental coverage; different companies have different needs.

To construct the precise plan for self-insurance, it is crucial that you have access to workforce data, allowing you the opportunity to thoroughly understand the advantages and, most importantly, to start from the foundation you desire.

How to take advantage of self-insuring dental

Despite the upsides, many businesses don’t take advantage of self-funded dental insurance. This is one of the reasons why we started Level.

We help companies maximize the benefits of self-insurance by offering a platform that operates an end-to-end network of dentists, processes payments and claims, underwrites and designs plans. Additionally, we provide brokers and employers with a modern, easy-to-use dashboard for analyzing data, so they can optimize their plans for both employees and the business. We even offer draft benefit documents.

We can help you switch to a self-insured plan in order to save an average of 20% on companies’ self-insurance. After taking a small administrative fee into account, we will even handle the work for you.

Reach out to us if you are interested in discovering further information on how Level can benefit your company. Feel free to get in contact if you are a broker who is keen on assisting clients in discovering additional worth by opting for self-insurance for their dental needs.