Cost of Small Business Dental Insurance

Above all other groups, the 2007 rate hikes of dental and health insurance affects small businesses the most. Most insurance plans will raise their rates by 14 to 18.4 percent more for companies with two to fifty employees. For some companies they may even see rate hikes of twenty percent of more for specific insurance plans and coverage types.

Since small businesses have less premium dollars to cover costs they are hurt the worst by these rate hikes. In addition, with little influence and options small businesses are at a serious disadvantage. The National Association for the Self-Employed found that companies making a gross of at least fifty thousand dollars a year spent a median of 18.7 percent on insurance.

Insurance companies claim that the use of expensive technology services is driving up the costs along with an increase in emergency room visits. Since the government is now requiring more coverage and insurance fraud is on the rise then the cost is passed on to the consumer as well.

However, there is good news for some small business owners. The Delta Dental Insurance Company recently announced that in Nevada and Utah they would be starting a new affordable dental program. Their new program will be available to businesses with five to 299 employees.

According to a study conducted by the U.S. Department of Labor, only 31 percent of individuals with small businesses have dental insurance compared to 65 percent of those who work for larger corporations. The new Delta Dental program is designed to overcome this barrier by allowing business owners to have more choice in their coverage plans. The program will provide six different options with the same advantage as the coverage of larger corporations.