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Types of Employee-Sponsored Dental Benefits Plans

Bookmark and Share Some employers offer a dental plan as part of the employer benefits package. It can be a beneficial employment perk, so become familiar with the common types of dental benefits as you decide if your company's plan meets your needs.  

Fee-for-Service Dental Benefits

Under this type of plan, the dentist receives a set fee for services. There are five common types of fee-for-services dental benefits plans.

  1. Direct Reimbursement

    This self-funded plan allows you to choose your dentist. Your insurance will directly reimburse the dentist or you pay out-of-pocket, submit a receipt to your insurance and receive a check.

  2. Indemnity Plans

    Also called traditional insurance, indemnity plans allow you to choose your dentist and pay dentists based on the procedures they perform. The dentist determines the fee for each procedure, and your insurance covers a portion of each procedure up to a maximum allowance.

  3. Preferred Provider Organization (PPO)

    Dentists in a PPO plan contract with an insurance company and deliver specific dental services for a set fee. You'll save money by seeing a dentist in your PPO rather than an out-of-network provider.  

  4. Managed Care

    Dental providers may partner with members and provide managed dental care. This care includes dental procedures and financing.

  5. Dental Health Maintenance Organization

    A dental health maintenance organization (DHMO) is also known as a capitation or pre-paid plan. Under a DHMO, your dentist receives a certain amount of money each month. The dentist must then provide services to you at no or a reduced cost. You must visit the covered dentist and will not receive any financial reimbursement for services you don’t use.

Other Types of Dental Plans

In addition to fee-for-service dental benefits, you may choose from several other types of dental plans.

  1. Discount or Referral Dental Plans

    The insurance company may contract with a network of dentists who agree to discount their services to members. You pay for treatment you need out-of-pocket according to the fee schedule.

  2. Point of Service Options

    With your managed care dental plan, you may receive treatment from dentists who are not in your network of dental providers. Expect to pay significantly more to out-of-network providers than you would for services from an in-network dentist.

  3. Table or Schedule of Allowances Plans

    A type of indemnity plan, a table or schedule of allowance dental plan assigns a dollar amount to each dental procedure. You must pay the difference between the allowance and the actual charge, and you may need to choose a PPO dentist to receive the maximum benefit amount.

Your employer may offer dental benefits as part of your employee benefits package. Understand which type of plan is offered as you decide if the coverage is right for you.

Highest Vehicle Theft Locations

Bookmark and Share The National Insurance Crime Bureau (NICB) released its list of U.S. metropolitan areas plagued with the highest stolen-vehicle rates in 2015. California cities took eight of the top ten spots, with New Mexico and Colorado filling out the list.

What does this mean for you, the business owner?

It reinforces the threat of vehicle theft. If your company vehicle is stolen, it could take some time to replace that vehicle, which could impact your business. Although it seems that those in sunny California get the short end of the stick, the bottom line is that thieves wreak havoc on business parking lots and jobsites nationwide.

The NICB recommends three levels of security:
  • Warning devices, such as alarms.
  • Immobilizing devices, such as a smart key or kill switch.
  • Tracking devices that help police locate the vehicle.
The NICB also advises owners and users of vehicles to exercise such common sense precautions such as not leaving the car unlocked.

Although NICB’s recommendations provide viable risk-management techniques, a commercial auto policy that includes theft coverage will also help.

If we haven’t discussed your coverage in a while, now’s the time. Please give us call us today

The Purpose and Benefits of an Executive Benefits Plan

Bookmark and Share Attracting top leadership talent for your company is essential since good leaders grow businesses, increase productivity and motivate employees. However, many companies cannot afford to offer competitive benefits plans to the leaders who can guide their organization to success. Executive benefits plans provide a solution. If your company needs strong leadership, consider offering an executive benefits plan.  

What is an Executive Benefits Plan

Attract, reward and retain leaders and key employees in your business with an executive benefits plan. It's a contractual agreement between the employer and key employees. It offers retirement benefits that supplement your company's existing benefits package.

The plan gives your company flexibility when offering compensation to executives and key employees, and it can:

  • Replace income at retirement
  • Replace benefits lost because of IRS limits on qualified plans
  • Defer compensation
  • Enhance benefits during an acquisition or other change of control
  • Add additional benefits to qualified employee benefit plans
There are no coverage, eligibility or participation requirements for an executive benefits plan, making it ideal for companies of all sizes.

Executive Benefits Plan Eligibility

Almost any employee is eligible for qualified employee benefits packages. Only select employees are eligible for executive benefits plans, however. According to the Department of Labor, these plans may only cover select management personnel with specific job titles.

  • President
  • Chief executive officer
  • Chief financial officer
  • Senior or executive vice president
  • General counsel
  • Treasurer
Additionally, highly compensated employees or those with key responsibilities may be eligible for executive benefits plans.     

Products Available in an Executive Benefits Plan

Consider all the available products when you assemble an executive benefits plan. In general, you may choose from several product options, including:  

  • Executive Health Plans
  • Elective Deferred Compensation Plan (EDC)
  • Benefit Equalization Plans (BEPS)
  • Supplemental Executive Retirement Plan (SERP)
  • Medical Reimbursement Plans
  • Section 162 Bonus Plans
  • Split-Dollar Plans
  • 457(b) Plans
  • 457(f) Plans
  • Key Person Disability Coverage
  • Key Person Life Insurance
Funding Considerations

When funding an executive benefits plan, you can choose between two options.

  • Funded plans offer security since contributions are deposited into an independent trust which then pays the benefits.
  • Unfunded plans are deducted from the company's general assets.
Talk to your benefits plan administrator or insurance agent for more details on funded and unfunded plans. Then choose the type that meets your needs.

Leaders can make or break a business. Offer an executive benefits plan to develop a strong leadership team. When choosing an executive benefits plan, look for one that's managed by a reputable company. It should be effective and cost-efficient too as you retain leaders who help your company prosper.

HR Success

Bookmark and Share I remember a Southwest executive telling me once that if we take care of our people they will take care of our customers and that will take care of our profits. Since their inception this has held to be true. The Success article was an interview with the CEO of the $1.8 billion company, Andrew Cherng. Here are some pointers that he made to help nurture your workforce:
“The environment here is about personal growth, personal well-being. When you are healthy mentally, physically, emotionally, spiritually—when you’re doing well, you’re likely to do good things in your life and that’s what we advocate.”
Tell me you wouldn’t want to work for a boss like this!
“The environment is a way you see the future. One person at a time.”
Cherng realizes your environment and culture is a choice. As he stated, you can only build a culture through individuals; one person at a time.
“People who are successful tend to take care of those little things very well. And then they accumulate credit, resources, and do whatever it is that you need in life—that’s the preparation for success.”
Do you take care of the little things very well? Have you accumulated credit, resources, and do whatever it takes to prepare for success? As the saying goes, when you take care of the little things the big things tend to take care of themselves.
“We can all do a better job. And when we do we all get rewarded. The reward may come in just being happy or in other people being happy. When you do your job well, your customer feels that and your business blossoms”
How motivated are you and your fellow employees to not do just an average job or a comfortable one but an extraordinary, awesome one? Are they doing tasks in a way that make them feel happy?

Cherng suggests that management should ask employees:
“Are you being mindful? Are you putting your heart into the work? Are you passionate about your work? Are you loving your environment? Our job is to raise everyone’s levels of understanding and caring. When you raise the level of caring, you see a good result.”
While we think of ourselves as good people and have good intentions we often times don’t manifest that. An excellent book was written about it “Leadership and Self Deception.” The essential theme being that we deceive ourselves; that we in fact manifest caring. What have you done lately to show employees that you care?

We live in an experience economy and the whole purpose of any business is to increase human well-being. What a wonderful opportunity for every one of us!