Dental discount plans poised for growth as benefit for underserved workers

More Americans than ever are enrolled in discount plans that promise big savings on dental care but don't cover any of the costs.

Once the domain of shaky regional upstarts, such plans are increasingly available through respected national carriers, including Aetna and Cigna. They cost just a few bucks a month, perhaps $5 for single coverage and $10 per family. Employers like to offer them because they carry the clout and the bargaining power of brand-name insurance without actually being insurance. In other words, they're no-risk and cheap.



"We can confirm a very strong upward trend in discount dental," says Evelyn Ireland, executive director of the National Association of Dental Plans.



The association estimates some 15.1 million people were enrolled in dental discount products in 2004, a steep jump from the prior year's estimate of 11.6 members. Better recordkeeping accounts for much of the increase, admits Ireland; nevertheless, NADP shows the plans progressing at a faster clip than the overall dental market, edging up from 8% to 9% of market share between 2003 and 2004.



Education critical



A big unknown of dental discount plans is whether plan members will seek appropriate care without insurance coverage to guide them. The new product's success will depend on many factors, including whether discounts are attractive, whether dentist-patient relationships are strong, and whether people who pay for dental discount plans actually use them.



The key may lie in education.



"Even when employees have 100% coverage for routine care, they often don't go," observes Aetna's Sandberg. "We have the same challenges with a discount plan as we do with any dental plan. We need to educate members about the importance of preventive dental care and that good dental health can improve overall health."