GovernmentExecutive.com

Return to Article: Choosing Dental Coverage

• 36604
  

  I am retired from puget sound naval shipyard and I am looking at dental insurance. I have blue cross blue shield medical and I am interested if a dental plan should be added. I have a lot of plack and I usually get my teeth cleaned 3to 4 times a year, I also have a daughter I am keeping on my coverage until she is 22 years old, which is only another 13mos. I would be interested in any input you have on the type of coverage and the amount it will cost me.

  Gordon M. Squire Posted November 5, 2007 10:37 PM
• 20173
  

  Great article, but a little too late for those having dilemma on what insurance they want to take.

  Thank you Ms. Flanagan. I always read your articles and appreciate your views, opinions, and information you provide to readers.

  Vilma Meriwether Posted December 15, 2006 10:39 AM
• 20040
  

  Tammy, thank you for pointing out that retirees' income from pensions is not subject to pretax deductions for medical and dental coverage. Please everyone write your congressman and every other congressman and have them adjust this ridiculous omission. Writing your congressman is easy because they all have e-mail and Web sites you can go to write them. We need a big flow on this topic and should demand they make health and dental premiums and flexible health savings available to the most needy in our society -- our retirees! In reality they should make all pension and Social Security payments tax free but at least we should try for a deduction for health care!

  Taxpayer Posted December 8, 2006 8:27 AM
• 20021
  

  Watch out about the dental. I called MetLife today and they told me that there is a standard non-duplication of benefits. When we plugged in the numbers, it turned out that if we chose a health program that had fairly good dental benefits, like MD-IPA, MetLife, a representative told me that they may not pay anything on a root canal, since MD-IPA had a fixed payment and that it might be higher than the 50 percent. After that I racked the Web site -- so far I've logged over 20 hours investigating the plans -- to find a health benefit service that has no dental. Then I happened upon non-OPM sponsored dental, like major carriers like CIGNA, which appear to have much better coverage for the same cost (I'm a self only). Although the premiums are not pre-tax, the plans state that they coordinate benefits. So now it's back to the drawing board for me to find the best health and dental. Good luck to everyone.

  Carole A. Geronimo Posted December 8, 2006 1:32 AM
• 19994
  

  Thank you for all the information and commentaries. This has helped me a lot in figuring out where to start looking for the best dental plan and what other factors to consider, as everyone has put in their 2 cents on Tammy's analysis. I have Blue Cross Blue Shield and their coverage for dental is very poor. I have no better option, but to go for a separate dental plan. The toss up for me was between MetLife and CompBenefits. After talking to many people and doing a comparison between the two plans, I am going with MetLife and hope that it is the best choice for me.

  GovExec.com reader Posted December 7, 2006 9:08 AM
• 19906
  

  In Tammy's case, it appears to me that she will lose about $600 by reducing this tax benefit, when responsibility for payment for her dental expenses is shifted from her flexible health care savings account to the Metlife dental plan.

  Thank you for further analyzing my decision! I still plan to put dollars into an FSA Healthcare account for the out of pocket expenses that are not covered by the dental plan. I will report my savings next year this time!

  Tammy Flanagan Posted December 1, 2006 9:30 PM
• 19905
  

  Why isn't the premium deducted from the pension before distribution on a non-tax basis? See next question:

  Is there a flexible health savings plan for retirees so the payments are deducted from the retirement pensions? No, unfortunately the current tax code does not provide "premium conversion" benefits for retirees.

  It appears that some of the comments are confusing the brand new dental plans with dental plans that have been previously available to federal employees. These plans (FEDVIP enrollment through www.benefeds.com) are unique. The benefits are more comprehensive than any dental plan previously available to feds. Employees (unfortunately, not retirees) also pay the premiums with dollars that are not taxed, so the annual cost is reduced by about 30 percent to 40 percent (no federal, state, or Social Security taxes).

  All I can say is that I encourage you to do some homework -- the very worst is that you will try them and not like them. You can always drop out next year!

  Tammy Flanagan Posted December 1, 2006 9:27 PM
• 19891
  

  After years of fighting with dental insurance carriers that never covered what I need, alienated my dentist, etc., I stopped using dental insurance. Most years the cost of the premiums is higher than my dental work. When that was not the case, what I had to pay from my pocket was not fully reimbursable by an insurer. There's a good possibility that a younger family using pre-tax dollars for the insurance should buy it, but everyone else -- especially retirees -- should do the math first using a five-year model.

  GovExec.com reader Posted December 1, 2006 9:50 AM
• 19841
  

  The new dental coverage seems very expensive for those with families, in my humble opinion. The premiums for a self and family plan for my area range from about $825 to $1,500 per year ($41.58 to $56.77 biweekly). However, the annual maximum benefit per person is limited to $1,200! Also remember that many of our current health insurance plans (in my case, BCBS) already have a limited dental benefit that we pay premiums for. In addition, while the proposed plans pay 100 percent for preventive care, they pay less for intermediate care, major care, and orthodontic care. For the average family with good dental health that visits the dentist twice a year for check-ups and cleanings, it may be less expensive if you decline this additional coverage, and just pay as you go! Is this the best that OPM can do for federal employees?

  GovExec.com reader Posted November 29, 2006 5:15 PM
• 19823
  

  Otis,

  You might be able to find some useful information here:

  Many agencies provide free access.

  Checkbook Guide to Federal Health Plans http://www.checkbook.org/newhig2/more.cfm

  Charles Posted November 28, 2006 5:56 PM
• 19803
  

  Taxpayer,

  Causey might have some useful information for you.

  http://federalnewsradio.com/index.php?nid=7

  Charles Posted November 27, 2006 3:09 PM
• 19738
  

  Although Tammy's analysis takes into account the fact that premiums for the new dental insurance plans will be exempt from income tax, she didn't consider the fact that our contributions to flexible health care savings accounts are likewise exempt from income tax. In Tammy's case, it appears to me that she will lose about $600 by reducing this tax benefit, when responsibility for payment for her dental expenses is shifted from her flexible health care savings account to the Metlife dental plan. Nevertheless, it appears to me that her net out-of-pocket expenses will be about $540 less next year, under the Metlife plan, assuming that her dental bills and her FEHBP benefit remain the same. In reaching this conclusion, I assumed that her Metlife plan would pay $2,000 of her dental expenses; but since she said that the $2,000 figure is probably high, it seems that if the true figure were down around $1,500, her only advantage from the new dental insurance would be to avoid the risk of losing money by contributing too much to a flexible health care savings account (since excess contributions to those accounts aren't reimbursed). On the other hand, while dental insurance only covers dental expenses, money put into a flexible health care savings account may alternately be used for other medical expenses. I'd appreciate seeing Tammy's response to these comments. Thank you.

  Steve Simon Posted November 21, 2006 9:35 AM
• 19709
  

  Tammy,

  Nice article but I have Blue Cross/ Blue Shield for Med Coverage and Mail Handlers Supplemental for our dental insurance. It would have been nice if your comparison would have included the mail handlers dental. Also the OPM chart did not include mail handlers -- no surprise as OPM never seems to get anything right.

  Otis

  GovExec.com reader Posted November 17, 2006 2:55 PM
• 19706
  

  I am waiting for OPM to approve my disability retirement. I will probably be retired after the first of the year. I need some dental work done. Can I sign up for dental insurance? Would it be cost effective to do so? Thanks.

  Marcia Foster Posted November 17, 2006 12:14 PM
• 19692
  

  Tammy,

  Your article raises questions that I need to find answers for. You say that the premium for dental insurance (is that also true for health insurance) is not deductible from a retirement pension (I will receive FERS payments). Here are the questions:

  1. Why isn't the premium deducted from the pension before distribution on a non-tax basis?
  2. Is the premium eligible for deduction if the filing itemizes deductions?
  3. Is there a flexible health savings plan for retirees so the payments are deducted from the retirement pensions?
  4. Is there a tax deduction for contributions into a traditional IRA from pension payments for retirees?

  Thanks for any help you may provide.

  Taxpayer Posted November 17, 2006 8:47 AM