Insurance is rarely a fun topic. It’s complicated, difficult to actually get coverage on the things you want, and very often, expensive. Over the last several years, there have been some major shifts in the insurance industry regarding dental insurance. We will lay out what those trends have been and guide you in getting your ideal coverage.
What are economic changes in dental insurance?
In economics things happen on two levels, the macro and the micro. Microeconomics refers to individual households, consumers, and small communities. It refers to things like what the prices of good will be for end consumers and regular people. Macroeconomics deals with things on large scales, from huge corporate changes to international laws that can quickly change our economic landscape. Things like OPEC, tariffs, and national tax rates are drivers of macroeconomic change.
On the macro-level, there are major changes going on in insurance right now. A West Monroe Study interviewed numerous executives of insurance and dental plan providers. What they found was an interesting gap between the reality and what the industry is expecting. They also examined what the changes in the industry are predicted to be.
As for micro-level changes, we can expect to have on insurance provider giving us both dental and health coverage. This should result in overall better care and less money spent by the consumer.
The dental insurance industry is big, but not invincible
As of 2015, about two thirds of Americans had dental benefits. Many were provided by their jobs, but many were parts of private insurance plans. Of those private plans, 99% of them purchased their dental coverage from standalone dental insurers.
According to the West Monroe Study, market changes involving technology, law, and the market itself are putting standalone dental insurers at risk. The industry executives surveyed reported that convergence of dental and medical coverage is inevitable. Eventually, most people will have one set of medical insurance that covers dental as well.
What are the changes exactly?
39% of the Dental insurers surveyed said they expect to partner with health insurance over the next few years, and 36% said they expect their insurance to be embedded in health insurance in that same time frame.
They believe this comes from a mix of market factors as well as the trend of consumers to view health and healthcare more holistically. Other factors pushing the joining of dental and health insurance are regulations, and the shift to value-based care.
What’s the takeaway? A full 96% of those surveyed said that they believe dental and health insurance would be integrated in the future, or are already in the process of becoming so. The two joining is not only going to happen, it is happening.
What does this mean for you?
Fortunately, it means things can be a bit simpler for you trying to get insurance in the future. One company to deal with, one insurance package; just an easier way to deal with things.
The bundled packaging is easier for consumers, and has reflected that in its success so far.
Bundled service also means you are more likely to easily be able to visit a dentist. The main factor in whether or not people went to dentists for their 6 month checkup was whether they had dental insurance or not.
As more people are expected to get their insurance bundled, demand for full health coverage, including dental is expected to rise.
As demand rises and the two insurers continue to integrate we can expect the following:
- More holistic dental and healthcare.
- More insights and better value gleaned by consumers from healthcare.
- A more engaging and convenient patient experience.
The integration of these systems is happening now, it’s time to decide if you are ready for it.
Get the best dental care available
Josey Lane Dentistry is an experienced and high-quality family care provider in the Carrollton Texas area. If you are in the market for dental coverage, need a procedure, or just want your 6 month check up, let us know, and we can help. We also offer advice on how to be treated if you don’t have insurance. Don’t let anything stop you from having the best oral health, Josey Lane is here for you.
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