Vision Discounts Boost Interest in Dental

by John Foley

A features war has broken out in the dental market with competitors aiming to win the hearts and minds of small businesses and brokers. Vision discounts are on the latest front of this battle. Vision coverage has not been promoted aggressively. But, good vision care is becoming increasingly important as America ages and people spend more time in front of computers. Many Americans are enrolled in a dental insurance program, but the number of people with vision coverage is much smaller. Twenty-two percent of workers had vision benefits compared to 36% with dental benefits, according to a 2005 report by the Bureau of Labor Statistics.

Vision care is very much a pocketbook issue. With new technology and advanced services, taking care of your eyes has become increasingly expensive. The cost of glasses and lenses has remained relatively stable. But, costly services, such as laser surgery, have become very popular. Prices have fallen considerably since laser correction was introduced over a decade ago, but it still costs many times more than a pair of ordinary glasses.

Consequently, uptake of these new vision discounts has been swift. Offered as a free add-on, these discounts are available from in-network providers for a range of services, such as vision exams, eyeglass frames, contact lenses, and laser surgery, which accounts for a small, but fast growing percentage of all eye treatment. Enrollees can pay the out-of-pocket expenses using their health savings accounts, health reimbursement arrangements, and flexible spending accounts. Enrollees do not have to submit claim forms since these are product and service discounts, not insurance. They simply pay the discounted charge directly to the network provider.

Employers have been attracted to the idea of partnering dental and vision care for a variety of reasons. They recognize that employees use both of these low-cost benefits regularly. Employers also understand the link between better overall healthcare and productivity. In addition to the health and comfort benefits of better eyesight, regular vision check ups can help identify early signs of diabetes and glaucoma. When employees can afford to take care of themselves, they have less stress, fewer days of missed work, and fewer days of coming to work when they are too sick to be productive.

The discount helps members fully appreciate the value of coverage. A pair of glasses is still expensive, even after the discount. But, members understand that new frames and lenses can be insured for a very low cost. It often leads them to buy vision insurance eventually.

Free add-ons, such as vision discounts and incremental cost features, such as annual maximum roll over programs are popular. In our experience, more than 50% of accounts added a roll over benefit the first year it was offered.

Brokers and their customers can expect these programs to get creative with services and products related to dental and vision care in order to rapidly differentiate products; build additional value into the coverage; and keep a lid on costs.

Evidence-based care is another important theme. Scientists are working to understand how dental and oral health are linked to overall health. They know the relationship exists, but they don't yet understand the reasons. For example, doctors have uncovered a correlation between periodontal disease and heart disease. As scientists understand how dental and oral health are linked to overall health, policies will evolve to meet new demands and address the need for holistic healthcare.

In addition, the demand for cosmetic dentistry shows no signs of slowing. Bleaching, whitening, implants, and other services will remain popular for a very long time. As these services become more widely available and costs come down, brokers can expect to see new features to meet the demand. For instance, bleaching is already available at a discount.

There are a couple of clear guideposts for brokers who are interested in leveraging these new features. First, partner with a carrier that leads the pack in innovation. Product innovation helps brokers distinguish themselves. Also, carriers that constantly look for ways to improve services and lower costs are most likely to be most interested in helping brokers grow their own businesses and support the long-term relationships with their customers. When there is a consistent pattern of forward-thinking, brokers can be assured that the carriers are investing in long-term relationships of their own.

Second, partner with a carrier that makes customer service a centerpiece of their offering. Claims-paying ability is just the price of entry. Carriers also need to be able to help with enrollment by providing representatives who bring a high degree of consistency and product knowledge to the process. This prevents problems in the long run and makes the broker's job easier. When problems do occur, customer-centered carriers have call center agents who can solve problems in the first call. Carriers must also offer a stable support structure. Nothing seems to frustrate brokers more than a revolving sales force in which the regular contact doesn't last long.

Most importantly, brokers should be able to rely on flexibility in product design, which means there is no substitute for understanding customers' needs. The attention to dental coverage can lead to additional vision care sales; be applied in the traditional group benefits arena; or, with the growth of worksite, be equally successful in a direct sale.

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John Foley, is Vice President of Group Dental for The Guardian Life Insurance Co. of America.