HEALTHCARE
HEALTHCARE
Study Reveals Dental Insurance Encourages Healthier Employees
By Larry Feld Contributing Editor
Compelling evidence regarding the value of dental insurance is detailed in a recent report published in late September . The 2023 State of America ’ s Oral Health and Wellness Report surveyed over 2,000 adults across the country , including more than half of those surveyed representing adults with children 12 years old or under . The survey found that consumers nationwide believe that having dental insurance fosters emotional well-being , supports optimal overall health , and provides tangible overall savings .
The report is particularly timely as we enter the year ’ s final quarter when employers begin to finalize their health benefit offerings for the coming year . Inflation , supply chain issues , and rising interest rates have no doubt left some companies struggling this year . In tight economic times , the cost of employee benefits will certainly receive its fair share of scrutiny . At risk is the delicate balance between controlling the cost of services against the expense of absenteeism and lower productivity from unhealthy employees . It ’ s a perennial challenge .
“ Our leadership strongly believes in offering a competitive plan , regardless of the economy ,” notes Leticia Waelz , Senior Vice President , Benefits Manager for Valley Bank . “ We have re-designed our plans and re-structured some of the co-payments , deductibles , and out-of-pocket maximums for cost efficiencies but never diluted the plans or taken away important health services from our associates .”
“ Unfortunately , a lot of companies are switching to plans that are not quite as rich as they used to be ,” notes Beth Senzer , Director of Human Resources for LPS Industries , a manufacturer of specialized flexible packaging with 123 fulltime employees headquartered in Moonachie , New Jersey . “ Companies are moving more to high-deductible plans . Unfortunately , you can ’ t afford to stay in business and continue to pay the high cost of the old traditional plans we used to have ,” she says .
The truth is that labor is expensive . Total employer compensation costs for private industry workers averaged $ 41.03 per hour , according to figures released in June 2023 by the U . S . Bureau of Labor Statistics . Wages and salaries average $ 28.97 per hour worked , or about 70.6 percent of employer costs , while benefit costs average $ 12.06 per hour and accounted for the remaining 29.4 percent .
The Bureau of Labor Statistics defines benefits as a combination of five elements : paid leave , ( including vacation , holiday , sick , and personal leave }; supplemental pay ; insurance costs , including life , health , dental , as well as short-term and long-term disability ; retirement savings contributions ; and legally required benefits , such as unemployment and social security .
Health insurance costs alone , according to the Government , currently account for $ 2.84 per hour or about 6.9 percent of the average worker ’ s hourly compensation .
Do benefits such as health and dental coverage have an impact on recruiting ? Human resource professionals have differing opinions on the subject .
“ Our leadership strongly believes in offering a competitive plan , regardless of the economy ,”… “ We have re-designed our plans and re-structured some of the copayments , deductibles , and out-of-pocket maximums for cost efficiencies but never diluted the plans or taken away important health services from our associates .”
“ No , I don ’ t think prospective employees place that much emphasis on it ,” LPS Industry ’ s Senzer offers . “ It ’ s not like the old days when benefits were the shining star , but it might impact an employer ’ s ability to retain people ,” she says , admitting that dental plans because they are relatively inexpensive , differ from health plans in the equation .
“ Medical benefits are a priority for prospective employees with dental being a close second ,” reports Leticia Waelz . “ At Valley , we have one of the best dental plans in the industry however , dental coverage alone is not the main driver of why someone will take a position at any company .
Dennis G . Wilson , President and CEO of Delta Dental of New Jersey .
Nonetheless , dental coverage is a very competitive piece of our suite of benefits ,” Waelz relates .
The State of America ’ s Oral Health and Wellness Report , commissioned by Delta Dental of New Jersey , surveyed employees from across the country . The report , produced by Material Holdings , LLC , a global insights and strategy consultancy , utilized email invitations and online surveys of participants recruited through an opt-in panel . Geographic distribution quotas were set to ensure a reliable and accurate representation of the U . S . population of adults and parents with children 12 and under . Research in this report has a margin of error of +/ - 3 %.
The State of America ’ s Oral Health and Wellness Report reveals three important consumer beliefs regarding their oral health and the value of having dental insurance , including :
Supporting optimal overall health
◾ The report finds that 86 % of adults agree that having dental coverage allows for good overall health
Continued
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