Dental Coverage Remains Affordable

The cost of dental insurance is holding steady compared with other forms of medical coverage, according to a report focusing on dental benefits for state employees by the Segal Company.

Per capita dental claims cost rose by 5.8% in 2002, while total premium rates increased by 2.7%, the consultancy concluded in its 2003 Segal State Health Benefit Survey. The survey found that the average per-person monthly premium came to $23.44 for employee-only coverage, and $62.87 for employee-and-family coverage in 2002. Researchers noted, however, that there were considerable differences in the cost of premiums among the states surveyed. Around 42% of the states participating in the survey have dental programs with no deductible.

The cost of dental plans should grow slowly, the consultancy predicted in its 2004 Segal Health Plan Cost Trend Survey. This year, charges for coverage by fee-for-service (FFS) indemnity plans are expected to rise by 7.4%, dental preferred provider organizations (DPOs) by 6.8%, and dental health management organizations (DMOs) by 5.2%. The gap between DMOs and other types of plans is projected to grow in 2004.

Segal speculated in the report that dental plan cost increases tend to be lower than medical plan increases because improved dental hygiene and prevention have kept utilization rates relatively stable.