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Recent reports from the National Association of Dental Plans (NADP) indicate that the dental benefits market continues to expand modestly, and that new opportunities for brokers and consultants are expected this year.
Since the late 1980s, enrollment in dental benefits plans has grown dramatically. Delta Dental, the nation's largest dental benefits carrier, experienced a 57% increase in total enrollment from 1989 to 2005. According to 2005 State of the Dental Benefits Market Report, approximately 55% of the U.S. population, or 162 million people, had dental benefits in 2005.
The market is also seeing movement between various plan types. Dental preferred provider organizations (DPPOs) continue gaining enrollment. Part of this increase in DPPO enrollment can be attributed to a migration from dental fee-for-service plans, which have seen modest declines in enrollment. Enrollment in DHMOs remained relatively steady, although this sector
continues to consolidate in states with concentrated urban markets. The report also found that enrollment in discount dental plans was more or less stagnant.
Interpreting the results of these and other NADP reports in a recent edition of Employee
Benefit News, the NADP's director of research and information noted that dental benefits were ranked just behind health and retirement as employees' favorite benefit.
"Seven out of 10 employers (71%) offer dental benefits, often using them as the differentiating factor in recruiting and retaining employees," the director said in the article.
The director also referred to another NADP report in which more than a quarter of the
employers surveyed said they planned to change their dental benefit plans this year.
Of these, about half indicated that they would use brokers or consultants when selecting their new benefit plans. |
