Dental Insurance in the US Industry Market Research Report Now Available from IBISWorld

Los Angeles, CA (PRWEB) February 24, 2012

According to a recent Gallup poll, about 17.1% of Americans lack medical insurance, while about 45.1% have no dental insurance, according to reports by the Dental Insurance industry players. This drastic difference helps to illustrate the considerable distinction between the two types of healthcare coverage, says IBISWorld industry analyst Kathleen Ripley. Dental insurance, which currently makes up just 7.0% of the greater health and medical insurance sector, largely focuses on covering regular maintenance and preventative oral health treatments, while medical insurance largely covers unpredictable and urgent health ailments. Consequently, dental care costs and the Dental Insurance industry are generally more stable than medical costs and the associated insurance.

Over the past five years, the US Dental Insurance industry has been strained by rising healthcare expenditures, economic distress and weakening employer commitment to providing coverage. These negative trends have resulted in slow industry revenue growth of 2.0% per year on average from 2007 to 2012. During this period, a consistent increase in healthcare expenditure (i.e. medical-cost inflation) has driven revenue growth despite an increase in existing policy cancellations. Still, Ripley says these cost increases and rotten economic climate put pressure on operators' profit margins. The industry has a low level of market share concentration, but because many companies operate as affiliates of associations like Delta Dental and Blue Cross Blue Shield, revenue levels do not necessarily reflect the actual percentage of the insurance market that the health insurer manages. Affiliates that operate under these associations’ brand names make up more than half of the industry. Other major players include Aetna Inc. and United Concordia Companies Inc.

The five-year outlook for industry operators is positive, with an improving economic environment, favorable demographic trends, increasing concern for oral health and the enactment of healthcare reform provisions for dental coverage. Revenue growth is expected to pick up in 2013 and beyond as healthcare reform and employment growth boost the number of Americans covered by dental insurance. Industry concentration has increased over the past five years as many companies viewed dental insurance as an extra cost and consequently cut dental coverage to save money. But this trend is expected to reverse as employment grows and companies attempt to attract candidates and retain employees with benefits including dental insurance. For more information, visit IBISWorld’s Dental Insurance report in the US industry page.

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IBISWorld industry Report Key Topics

This industry underwrites (i.e. assuming the risk and assigning premiums) dental insurance policies. Dental insurance helps to cover the costs of dental care, ranging from basic preventative coverage to major dental work, depending on the type and scope of insurance plan. Orthodontics coverage may be included in dental insurance plans, but reinsurance of dental policies is not included in this industry.

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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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