Dental & Vision Benefits – Positive for Employees & Employers Alike
As companies look to provide their employees with health care options that achieve both employee retention and employer cost savings, they’re increasingly turning to integrated benefits, including dental and vision.
Dentists and vision providers are often on the frontlines of detecting hundreds of underlying health conditions such as diabetes, cardiovascular disease and cancer. While they don’t diagnose those conditions, they can provide early intervention, leading to specialty care that’s more likely to have a positive outcome. Ultimately, that saves both the employee and the employer money on health care and the plans that are offered.
It also is a good business strategy to offer integrated plans that improve patient care. For example, early detection from integrated care can reduce absenteeism in the workplace, which, on average, costs employers $1,685 per employee per year, according to Employee Benefit News.
Are you curious as to what your competition is doing in other benefits areas, such as prescription management, life insurance, and short-and long-term disability? Find out here.
Finally, offering integrated care, particularly dental benefits, can improve employee attraction and retention. According to the Kaiser Family Foundation, fewer than half of the U.S. population are offered dental coverage from their employer. This gap in coverage could be a deciding factor for a high-value employee choosing between two companies or deciding whether to stay put. In fact, 60% of employees say benefits are a “major factor” in considering a job offer, according to a Glassdoor survey. The same survey found that nearly four in five employees would prefer new or additional benefits over a pay increase. These types of added benefits could be offered as a small token of appreciation should companies find raises are not feasible due to the COVID-19 pandemic.
The good news is it seems like employers are catching on. Our 2020 Employee Benefits Benchmark Report (the report) found that the top three dental plan designs include 100% coverage in class A preventive services. The highest, at 45%, offer a 100/80/50 coverage structure.
Other findings include:
- For dental plans, a majority (58.2%) of companies are having employees contribute, while 32.5% offer voluntary plans.
- For vision plans, 62.7% are voluntary and 32.5% are contributory.
- An even larger majority (71.6%) have dental plans with a $50 individual deductible. Just 15.8% have dental plans with no deductible at all. For vision plans, 58.9% of copays are $10/$25.
- Nearly one in four employers (73.3%) offer a 12/12/24 coverage structure for vision plans. Fewer than 1% offer a 24/24/24 coverage structure.