Based upon paid claims, both the specific deductible and the aggregate deductible stop-loss program for the employer’s self-funded benefit plan is initially calculated and these deductibles are recalculated each year. These deductibles may either increase or decrease annually.
With the inclusion of stop-loss insurance, the employer is assured that the cost of the benefit program will not exceed a predetermined amount. Plus, the self-insured employer has the option of increasing or decreasing this “retention” level, or deductible amount, each year.
By working with a good benefits administrator and a good stop-loss carrier, an employer can hold down ancillary benefit program costs and tailor benefits and provider lists to fit employees like a pair of comfortable spectacles.
Renny Thomas II is chief operating officer and senior vice president of corporate development for Dentafits/RX Reins, Palm Springs, Calif., a nationwide prescription drugs, dental and vision underwriter of aggregate stop-loss insurance.
He can be reached at [email protected].
Kicker: The Numbers
Who Has Dental == And Who Needs It
Worker Participation In Dental Plans |
|
Characteristics |
Participation in % |
All workers ……………………………………… |
36 |
Worker characteristics |
|
White-collar occupations ………………….. |
42 |
Blue-collar occupations ……………………. |
39 |
Service occupations ………………………… |
17 |
Full time …………………………………………. |
45 |
Part time ………………………………………… |
9 |
Union …………………………………………….. |
67 |
Nonunion ……………………………………….. |
33 |
Average wage less than $15 |
24 |
Average wage $15 per hour |
52 |
Establishment characteristics |
|
Goods producing …………………………….. |
49 |
Service producing ……………………………. |
33 |
to 99 workers ……………………………….. |
24 |
100 workers or more ……………………….. |
51 |
Geographic areas |
|
Metropolitan areas …………………………… |
37 |
Nonmetropolitan areas …………………….. |
31 |
New England ………………………………….. |
36 |
Middle Atlantic ………………………………… |
36 |
East North Central …………………………… |
38 |
West North Central ………………………….. |
34 |
South Atlantic …………………………………. |
34 |
East South Central ………………………….. |
36 |
West South Central …………………………. |
30 |
Mountain ………………………………………… |
33 |
Pacific ……………………………………………. |
44 |
|
|
Source: Bureau of Labor Statistics, National Compensation Survey, March 2005 |
|
|