Voluntary
Dental Products
Voluntary dental plans have made a name for themselves in the
voluntary/worksite market. In 2004, new business annualized premium
(sales) of voluntary dental plans was estimated at around $425
million.* Employees consistently rate dental coverage as one
of the most wanted and most important employee benefits. Traditionally an employer-provided benefit, voluntary employee-pay-all
plans have become more common in the last decade. In a 2004 study
by Eastbridge, 25 percent of those offering a dental plan offer
it as an employee-pay-all benefit.** Employers as well as carriers
predict that with the pressure of increasing costs for health
insurance, more employers will reduce or eliminate employer funding
of dental plans.
The purpose of Eastbridge’s latest report, Voluntary
Dental Products, is to examine today’s voluntary
dental market and to compare these findings with the data gathered
for a similar report conducted in 2001. Specifically, the report
covers general data on each profiled carrier (distribution,
voluntary dental sales, penetration, claims, target markets,
etc.) as well as:
- Competitors
- Product structure
- Underwriting
- Costs
- Commissions
- Sales/enrollment
- Trends and the future of voluntary dental.
With this data, carriers can continue to fine-tune their strategies
around their voluntary dental products and use the competitive
intelligence to compare their plans against the competition.
[Note: In order to protect the confidentiality of the carriers
profiled, all data is reported anonymously by assigning each
carrier a random number.]
* U.S. Worksite Sales
Study: Carrier Results, Eastbridge Consulting Group,
Inc., 2005.
** 21st
Century Employer: Redefining the Benefits Business,
Eastbridge Consulting Group, Inc., 2004.
Order Info: The
report is available for purchase for just $2,500. To order your
copy, simply email us at info@eastbridge.com or
call (860) 676-9633. Published
2006.
Table of Contents
1. Executive Summary
A. Introduction and Objectives
B. Methodology
C. Key Findings
2. General Carrier Information
A. General Data for Profiled Carriers
1. Worksite
Portfolio
2. Worksite Definition
3. Role of Worksite
4. Distribution Channel
5. Length of Time Dental
Product on Market
6. Voluntary Dental Sales for 2004
7. Penetration
8. Persistency and Retention
9. Claims Experience/Loss
Ratios
10. Typical Group Size
11. Target Markets
B. Competition
1. Primary Competitors
2. Competitive Differentiators
3. Competition from Medical Carriers
4. Competition
from Discount Programs
3. Product Details
A. Product Specifics
1. Product Structure
2. Product Design
3. Employer/Employee Options
4. Benefits Paid
5. Maximum Annual Benefit
6. Annual Deductible
7. Waiting Period
8. Pre-Existing Exclusion
9. Unique Features or Benefits
10. Multiple Plan Designs
11. Core/Buy-up Option
12. Low Cost Plan Option
B. Underwriting
1. Unacceptable Industries
2. Plan Selection Guidelines
3. Account Level Underwriting
4. Minimum Group Size
5. Minimum Participation Requirements
6. Eligibility Requirements
7. Issue Ages
8. Renewal Underwriting
C. Costs
1. Premium Structure
2. Rate Zones
3. Employer-Paid vs. Voluntary Premiums
D. Commissions E.
Sales and Enrollment
1. Standalone vs. Packaging
2. Enrollment Method
3. Enroller Type
4. Required Training
5. Pre-Tax Offering
6. Re-enrollment Process
F. Trends and the Future
1. Concerns about Product
2. Impact due to HSAs
3. Pressure to Offer Low Cost Plans 4.
Increase in “Employee Choice” Options
5. Other Trends
6. Future Direction of Product
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