The Real Value of Dental Network Discounts

Dental plans that offer network provider discounts are not new.

But as employers look for ways to afford employee health benefits that grow more expensive alongside rising healthcare costs, network benefits could be the solution.

“The true value of in-network care becomes apparent only when employees compare the total cost difference between in-network and out-of-network experiences,” says Kip Koll, director of account management and dental networks at Ameritas. “It’s easy to focus on plan benefit levels. If the coverage is the same both in- and out-of- network, employees assume the amount the plan pays is the standard. They need to see an illustration that highlights the network provider’s additional discount to understand the actual savings.”

Koll has spent more than 34 years at Ameritas educating producers, their clients, and plan members about the advantages of seeking care from network providers. “Visiting a dentist that offers discounted services seems like the obvious choice,” she says. “But if employees are skeptical about switching dentists, producers and employers should start looking at the additional advantages that can be realized. That takes employer and employee education to a higher level.”

More than Discounts

Lowering out-of-pocket costs for dental services is not the only way network discounts save money on benefits and healthcare.

First, look at the effects on the benefits themselves. Network discounts reduce procedure costs and, therefore, claims costs. That leaves more of the member’s annual maximum for other needed procedures and more comprehensive care. While preventive services may be fully covered, network discounts help lower costs for common procedures like fillings and root canals—so members have benefits left if they need a more costly crown, for example.

This also proves advantageous if members are trying to keep annual benefits use below a certain amount to earn rewards. “Ameritas offers a rewards program in which members can earn additional dental benefits to use the following year if they keep claims below a specific threshold during the current benefit year. Unless it’s pointed out to them, they may not realize that provider discounts will help them stay below that benefits threshold if they want to earn rewards,” Koll says. “That can be helpful for planning more expensive dental work in the future.”

Controlling Dental Claims and Benefits Costs

Employees aren’t likely to consider how dental claims impact benefit plans from year to year. But the result does affect their bottom line, since higher annual claims costs tend to drive up plan premium costs. As employers shift even more of their benefits costs to employees in 2026 through higher deductibles and copays, focusing more on network care and discounts could provide an alternative to cost sharing over time.

“Not only can continued use of network providers keep claim costs lower,” explains Koll, “network fee schedules actually increase less frequently than market rates. That provides an extra buffer against inflation and leads to more predictable network procedure and premium costs over time.”

Network contracts also give carriers some control over providers’ price increases and quality of care through contract limitations and provider credentialing.

Encouraging Network Care Through Education

Seeing is believing. That’s why real cost examples resonate with employees who are seeking dental care. Ameritas creates custom enrollment materials that feature area- and plan-specific cost examples for procedures at different levels, showing what members could pay when visiting a network provider versus an out-of-network provider.

Prior to enrollment, employees can also review average out-of-network costs for procedures in their area on the Ameritas website. Enrolled members can look up costs for network providers. And anyone can search for providers in their area.

Some clients benefit from customized education with specific examples. According to Koll, Ameritas will create group-specific employee email campaigns that show breakdowns of costs in areas where those employees live and include examples of how network discounts will help reduce the costs for procedures those employees are most likely to use.

To further encourage network dental care, producers can help employers offer plans that provide incentives such as an increasing maximum when employees limit their out-of-pocket costs with a network provider. Benefits that offer higher dental benefits and/ or maximums in-network also encourage network provider selection.

“Dental plans that leverage network benefits have many variables that can be used to achieve different goals,” Koll says. “But they all are aimed at cost savings. And producers are in a position to show their clients the tangible yet often overlooked value dental network plans offer employers and employees.”