Say “Cheese” – a Look at the Dental Market
Telos continues to monitor the market for ancillary health products and it continues to grow! With some type of dental benefits included in virtually all Medicare Advantage plans (noted here , here , and here , and plenty of other locations too), awareness of dental benefits among seniors and agents is high. On top of that, most seniors lose the dental benefits provided by their employer upon retirement. The need for individual dental coverage is clear.
The inclusion of dental coverage in Medicare Advantage plans is a great benefit, but these plans often include limitations. Further, plan designs change every year. Where else can seniors get dental benefits? Benefits vary, but some states do offer dental coverage through their Medicaid programs to seniors who qualify. Many individual dental offices offer membership plans that provide common services at a discount, but they are limited to service at that office. An individual dental insurance policy may cost more than some other options, but it provides flexibility, stability, and portability for seniors.
As shown in the chart below, earned premium for these products has grown significantly in recent years, with a notable exception in 2020 (and what was NOT negatively impacted in 2020?). While the future prevalence of other sources for dental coverage (Medicare Advantage, Medicaid, etc.) is unknown, what is certain is that the senior population will continue to grow! A conservative projection of future individual dental earned premiums is shown below, assuming that they will grow at a rate similar to what Telos projects for Medicare Supplement insurance.
Source Data: NAIC Accident & Health Experience Exhibits, Regulatory Filings, Telos Actuarial Estimates
With the size of the senior market, carriers and distributors are expanding their portfolios to offer Dental products. Would you like to learn more about these products? Our Dental Market Opportunity Report can help – it provides a big picture view of the market showing main competitors, profit margins, market projections, and more.
Contact us to find out more!