National Association Of Dental Plans Research Reveals Employers' Underlying Skepticism Regarding Brokers

Main Category: Dentistry
Also Included In: Health Insurance / Medical Insurance
Article Date: 05 Apr 2009 - 3:00 PDT

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Although brokers and consultants continue to play an important, valued role in the purchase of group dental benefits, more employers report some negative views of the broker/consultant role, according to the National Association of Dental Plans (NADP) 2008 Group Purchaser Behavior Study.

The NADP Study indicates employers using brokers during the purchasing process remained steady in 2008 at 49 percent, compared with 2005. Positive opinions about the value brokers add to the purchasing process rose since 2005. An additional 29 percent of respondents report they receive better rates when they go through a broker, and 18 percent more believe brokers have the company's best interest at heart.

However, a larger portion of employers report they work with brokers out of necessity, not preference. A growing percentage report they consider working with brokers an unnecessary step (38 percent, up from 26 percent) and would prefer to work directly with a dental plan but feel they have no choice (38 percent in 2008, up from 26 percent in 2005). Employers report that brokers are more focused on commissions than the best interest of their companies (44 percent, up from 28 percent).

The NADP Study reveals employers rely less on printed materials and more on the Web as a source for dental plan information.  Web-based information is especially important to the largest and smallest employers:

--  53 percent of employers visit dental plan Web sites;
--  44 percent request Web-based or electronic information; and
--  27 percent perform Internet searches.

    Published in December, the NADP 2008 Group Purchaser Behavior Study provides an understanding of purchasers' psychographic preferences and perceptions associated with dental coverage selection. It also assesses the role of brokers and other factors in the decision-making process.

About NADP

The National Association of Dental Plans is a non-profit trade association representing the entire dental benefits industry, including dental HMOs, dental PPOs, discount dental plans and dental indemnity products.  NADP's member plans provide dental benefits to more than 80 percent of the 173 million Americans with dental benefits. NADP's members include major commercial carriers, regional and single-state companies.

Source
National Association of Dental Plans

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