How a Small Business Can Save on Dental Coverage

May 12, 2012 - PRLog -- Studies have shown that dental insurance is one of the most popular features in an employer's benefits package, second only to health insurance. Still, many small business owners mistakenly believe that they cannot afford dental coverage for themselves or their employees because it's too expensive. However, at least one dental coverage expert believes that this is only true because few small business owners know the tricks to saving money on group dental coverage.

"When most business owners hear the term 'dental coverage', they immediately think the word 'insurance' when this is simply no longer the case. There are other options that are more affordable than traditional insurance", says Michael Kowalsky, Webmaster of 'Discount Dental 4 U', a websiteI that sells dental coverage. "There are DHMOs (Dental Health Maintenance Organizations), FSAs (Flexible Spending Accounts), discount dental plans and even direct reimbursement dental plans, all of which are more affordable than indemnity-based dental insurance".

However, for small businesses with five or fewer employees, the type the dental coverage that makes the most sense are discount dental plans because they allow a business owner to offer their employees access to savings on their dental care at a fraction of the cost of traditional dental insurance. Whereas insurance can cost the employer more than $500 per year for an individual policy ($1000+ per year for family policy), a group based discount plan can cost as little as $5.95 per month (individual) and $12.95 per month (family).

According to MoneyCrashers.com, the cost of dental care has consistently risen by nearly twice the average rate of inflation over the past half-century and there's no reason to believe that this trend won't continue.

"The Journal of the American Dental Association reported that only 35% of companies offer group dental insurance", said Michael Kowalsky, "and out of all of the companies who provide health insurance, only 63% of them offer dental insurance. The reason for this is because dental insurance is simply getting too expensive which is one of the reasons why more and more employers are turning to discount plans for their employees".

Perhaps the best aspect for small businesses is that discount plans can be offered to employees on a voluntary basis so that those employees already covered under their spouse's dental insurance can opt out of this type of coverage. Nonetheless, those employees that do want to discourage may still pay lower membership fees that if they purchased do plan on individual basis as their getting it at group rates.

Not all companies that sell discount plans offer group rates but for those that do, employers will find group discount dental plans provide no pre-existing condition exclusions, no annual limits on benefits, a simplified list billing process, and, of course, drastically lower premiums (a.k.a. membership fees).

One last reason for small businesses to opt for discount dental plan coverage is that some of these discount plans allow employees to deduct the dental insurance payments and reduce their payroll taxes, although it's always a good idea to check with your accountant for further information on any potential savings in this area.

To learn more about the advantages of discount dental plan coverage for small businesses, visit http://www.DiscountDental4U.net or e-mail Michael Kowalsky directly at webmaster@discountdental4u.net for more information.