Dec. 2, 2015 – When you evaluate whether dental insurance is worth the cost, consider the following factors in addition to comparing the premiums you will pay for the coverage with expenses covered by the policy you would otherwise expect to pay out of your own pocket.

Consider these factors:

1) Are you self-employed? If your firm/organization is set up as an LLC, LLP, S-Corp, or other pass-through entity and you are considered self-employed for tax purposes, you can deduct the cost of your dental insurance premiums. This can result in tax savings for you by shifting after-tax payment of dental expenses to pretax payment of dental insurance premiums. For more information, see the IRS publication, “Don’t Miss the Health Insurance Deduction if You’re Self-Employed.” Of course, you may want to first consult with an experienced professional tax advisor to help you understand how the tax law applies to your particular situation and to determine whether you may be eligible to take advantage of this federal tax provision.

2) Is your dentist a preferred provider in the dental insurer’s provider network? Dental insurers have networks of dental providers who have agreed to provide their services to that insurer’s customers at discounted rates. If your dental provider is in the network or if you are willing to move to a provider in the network, you may be able to achieve savings in dental costs.

3) Do you have another plan available to pay for dental expenses on a pretax basis? This may include a group dental plan, Flexible Spending Account (FSA), a Health Savings Account (HSA), or a Health Reimbursement Arrangement (HRA) that covers dental expenses. If you have this type of plan, do you expect that it will cover all of your dental expenses or are there expenses you will have to pay out of your own pocket?

4) Will having a dental insurance policy encourage you to use preventative treatment? Dental insurance often provides financial and benefit incentives for you to use preventative care by covering cleanings and other periodic exams. Will having these services “pre-paid” encourage you to use them more regularly?

5) Will smoothing of costs for more expensive services such as crowns, root-canals, and fillings help manage your family budget? Spreading dental costs over the year by way of paying premiums for a policy can be advantageous as opposed to forgoing dental insurance and paying the entire cost of the dental service out of your own pocket at the time it is performed.

Thoroughly evaluate your circumstances to determine whether dental insurance is worth the premium cost for you.

Learn More About the State Bar’s Dental Plan and Other Member Insurance Programs

The State Bar of Wisconsin offers a group dental plan as a member benefit for members and their families through Delta Dental of Wisconsin. Learn more about the State Bar’s Delta Dental Plan and other member insurance programs offered through Bultman Financial, or call (262) 782-9949 for more information.