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Dental spending is a significant to Canadian employers

Partners In Prevention 1Recently, I reviewed the spending on healthcare benefits by a mid-sized Canadian employer. In particular, I looked at the dental plan and the drug plan.

Here is what I found:

  • dental spending grew by 12% over the past year at a time when the number of employees was stable
  • dental spending surpassed the combined cost of the 10 most expensive drug categories (e.g. diabetes, cardiovascular)
  • assuming dental decay (“restoration”) amounted to 40% of the total cost of the overall dental benefit, fixing decayed teeth surpassed the combined drug costs of these major diseases: diabetes (including testing costs), mood disorders, gastro-intestinal disorders and lipid management.

We often hear about the crisis in diabetes. Green Shield Canada, for example, reports a 4.3% year over year growth in its claims for this epidemic in 2013-2014. In the context of this employer’s dental spending, diabetes is a well under control.

Knowing a little about this employer’s demographics, my guess is that this dental spending growth is only going to grow. This group is growing older. It is vulnerable to dental decay at the gum line — a condition which can’t be fixed (for long) and which only yields more spending on root canals and extractions/implants.

Hence, it is no surprise that this employer, and its workers who share half the cost of fixing their teeth, are looking for more preventive care.

For more information, please visit: http://partnersinprevention.ca

By: Ross Perry
SOURCED: Partners In Prevention – http://partnersinprevention.ca/dental-spending-is-a-significant-to-canadian-employers/

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