But, with several different plan designs and many levels of cover available, selecting one that best suits a workforce can boost the benefits for employers.
Figures from LaingBuisson’s annual Health cover UK market report (12th edition), published in July 2014, show that sales of corporate dental cover continue to grow. It found that over the five year period 2010-2014, the number of people covered by employer-paid policies increased by 36.5% to reach 419,000 at the end of 2014. It also found that the corporate group market - cover funded by both employer and employees - was represented by 613,000 people at the end of 2014, equivalent to 0.95% of the population.
Advantages for employers
There are several reasons why employers are checking out dental plans. First, they are a low-cost way to reward staff. A basic employer-paid plan giving cover for dental injury and emergency treatment can be introduced for less than £5 a month per employee, with schemes that cover NHS charges costing a couple of pounds more a month.
Dental plans are also a valuable health and wellbeing benefit. Encouraging employees to visit the dentist regularly can help to reduce absence due to toothache and associated problems.
In addition, because there are links between dental health and conditions such as stroke, diabetes and heart disease, helping employees to look after their teeth could have much wider health and financial benefits.
For example, by detecting diabetes at an early stage, an employee can take steps to adjust their lifestyle and prevent it developing. As well as significantly benefiting their health, this could reduce absence and, by preventing claims on an employer’s medical insurance scheme, potentially keep premiums down.
It is also easy to introduce dental plans. As more employers implement flexible benefits platforms on the back of pensions auto-enrolment, dental plans are a popular, low-cost addition.
Just how popular was demonstrated by The Benefits research 2014, published by Employee Benefits in May 2014. The research found that dental insurance was the most commonly offered benefit via a flex scheme, alongside medical insurance for employees’ partners and dependants. In total, 22% of respondents offered it via their flex scheme.
Employee benefit
Dental plans are also appreciated by employees. According to Denplan’s Health and wellbeing benefits survey 2015, published in April 2015, 56% of employees would appreciate access to a dental plan, with the same percentage of employers considering a dental plan to be the most valued benefit among employees.
Part of the reason employees like these plans so much is because, unlike some other employee benefits, they will get used. As everyone should see the dentist at least once a year, there is a high probability that employees will be able to make a claim.
This is enhanced by the fact that many employers offer the option to flex up the level of dental cover if they want. This means employees can have the level of cover that suits their dental health and budget.
Dental plans also address issues around affordability. Although it is getting easier to access NHS dentistry, the cost of treatment can still be prohibitively expensive for some employees. For example, there are three NHS charge bands ranging from £18.80 for an examination, diagnosis and advice through to £222.50 for more complex procedures such as crowns, dentures and bridges.
And, if an employee is unable to access NHS dentistry, they can find themselves facing significantly higher charges for private treatment. For example, a new patient dental examination at one of Bupa’s central London practices costs £59, with a filling from £75 and a crown from £600.
Delivering dental benefits
Dental benefits can be provided to employees in a number of different ways. The most common is through an insurance scheme. These can cover everything from check-ups and trips to the hygienist through to restorative and emergency work.
To reflect the fact that employees can run up markedly different dental bills, due either to their dentist’s fees or the amount of work they require, insurers typically offer four or five levels of cover on their plans. This means an employer can offer a set level of cover and allow employees to increase this if necessary.
For example, Cigna’s DentaCare plan has four cover levels ranging from level one, which is designed to cover NHS dental charges and includes £1,200 of annual benefit, through to level four, with a £3,000 annual maximum to cover higher-cost private dental charges. It is also possible to get an entry-level plan such as Denplan’s Key plan, which only provides cover for dental injury and emergency treatment.
Many plans now include extras, too. Mouth cancer cover is standard; for instance, all of Denplan’s schemes include up to £20,000 of cover towards one course of treatment for up to 18 months following diagnosis.
Insurers are also adding benefits in recognition of the growth of cosmetic dentistry. For example, Cigna gives a 20% discount when members use one of its 400 Healthy Discount dentists. This applies to any treatment, including private treatment costs not included on their cover.
It is also possible to provide dental benefits through a health cash plan. These enable employees to claim money back for a range of everyday healthcare costs, with dental and optical benefits being the most highly valued and biggest areas for claims.
The amount of dental benefit available through a cash plan varies. For instance, for £1 a week, Simplyhealth’s employer-paid plan includes £55 worth of dental benefit every year. Increase the premium to £6 a week and this annual benefit increases to £250.
Employers can also provide dental cover through some private medical insurance schemes. For example, Aviva’s Solutions plan is menu based and can include dental and optical cover including up to £500 of routine dental benefit and a further £600 for treatment required following an accident.
The facts
What are group dental plans?
Group dental plans are insurance-based schemes that provide employees with cover for dental check-ups and treatment. Insurers offer a range of levels of cover, starting with plans that are designed to cover NHS dentistry right up to fully comprehensive plans that take care of private dentistry bills. As well as insurance-based plans, it is also possible to offer dental benefits through a private medical insurance scheme or a health cash plan.
What are the origins of group dental plans?
The UK’s first group dental plan was offered by National Dental Plan back in 1987.
Where can employers get more information and advice?
Employers can find more information about the benefits of looking after employees’ dental health on the British Dental Health Foundation’s website at www.dentalhealth.org.
What are the costs involved?
Costs depend on the level of cover, the size of the group and whether the benefit is employer or employee funded. For example, a basic employer-paid plan can be put in place for less than £5 a month, while a fully comprehensive scheme paid for by employees will cost £40-plus a month.
What are the legal implications?
There are no legal implications associated with offering employees a dental plan.
What are the tax issues?
Dental plans are a benefit in kind so are subject to tax and national insurance.
What is the annual spend?
According to LaingBuisson’s Dentistry UK market report 2014 (4th edition), published in April 2014, the UK’s total dental plan market was worth an estimated £719m in 2012, with £95m of this spent on dental insurance by individuals and employers.
Which providers have the biggest market share?
There are no statistics available although in the corporate space the main players are Bupa, Cigna Healthcare, Denplan, Munroe Sutton, NDP and Premier Dental Care. Other providers include Axa PPP Healthcare, Dencover and cash plan providers such as Health Shield, Simplyhealth and Westfield Health.
Which have increased their market share the most?
Again, no statistics are collected on market share.
STATISTICS
- 56% of employees would appreciate access to a dental plan
- 61% of employers believe a dental plan helps to manage staff absenteeism
(Source: Denplan, April 2015)
- 40% of people who do not visit a dentist regularly say affordability is the main reason for this
- 17% of employees have taken unplanned leave due to dental problems
(Source: Cigna, August 2014)
- 4.6% increase in the number of dental insurance subscribers in 2013
(Source: LaingBuisson, July 2014)
- 31% of dentists advertising on NHS Choices as accepting new NHS patients have no space for new patients
(Source: Which?, June 2015)