Don't Mess With Dental Insurance

Don’t Mess With Dental Insurance

Mar 20, 2025

Dental insurance is an important piece of the voluntary benefits puzzle, protecting both the health and budgets of American households.

Americans with dental insurance are more likely to go to the dentist – about 75% of workers with dental benefits see a dentist for preventive care at least once a year compared to 37% who don’t have coverage. Preventive care is typically covered at 100% with no out-of-pocket costs to insureds. Seeking regular preventive care is critical to preventing and mitigating larger issues. Studies show oral health is critical to overall health.

Dental insurance is affordable, with premiums averaging just $31 per month nationally including employer contributions. Legislators in some states have proposed minimum loss ratio requirements (MLR) for insurers. Other proposals would limit the ability of insurers to negotiate discounts on dental services. These proposals would raise premiums and out-of-pocket costs for consumers. A study revealed that if California adopted an MLR, premium rates would rise between 13% and a whopping 266% depending on the type of coverage. That’s one reason why legislatures have rejected these proposals in each state where they have been introduced.

Proponents of these proposals argue that dental insurance is not valuable.

However, data from a 2024 survey shows that about 80% of respondents are satisfied or very satisfied with their dental insurance. This number has remained fairly consistent over the past five years. Easy access to quality care through their networks was typically ranked as the highest level of satisfaction.

Dental insurance is also a price sensitive product. Almost half of respondents without dental insurance said it was because the premiums are too high. Should some of these proposals pass in the states, premiums would have to be raised significantly, likely leading to dropped coverage.

Data shows that the dental market is working well. It is imperative that policymakers protect the access and affordability of dental insurance. Proposals that would make coverage more expensive should be rejected.

Rikki Pelta

In her role as AVP & Associate General Counsel, Rikki Pelta is responsible for industry advocacy and policy making at the state and federal level with a focus on life and dental insurance. She provides strategic guidance and leadership on various issues related to compliance, product filing, and voluntary benefits that are critical to ACLI’s goal of helping consumers achieve financial security. Rikki joined ACLI in 2018.