Methodology to determine dental insurance premium : Boston University's "Dental Health Plan" with analysis of utilization

Abstract

Dental insurance is a fringe benefit provided by employers. It originally came into existence around 1920's. However, the last two decades is considered the years of the growth of dental insurance in society. This indicates dramatic increase of enrollment for such benefits and ultimately higher dental expenditure as well. In spite of popularity of dental insurance, there is still a debate about its function. The argument touches basically upon the issue of quality of dental service raised by all parties - patients, dentists, insurance carriers. This calls for more attention and involvement of government agencies who regulate insurance and pay for services. Today a variety of dental health plans are marketed by insurance carriers. Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) are the plans that have grown the most among others. Capitation is another new dental plan option which perhaps will absorb more market share in the future. "Dental Health Plan" is a benefit provided by Boston University, which is adopted from PPO type option. It offers employees premiums for "Individual" and "Family" participants.