If you own or manage a dental practice, you know how important it is to attract and retain employees. In today’s job market, you’re more likely to entice talented staff with a compelling benefits package. But how can you craft a compensation package that will appeal to them without breaking the bank?
There are more than 200,000 dentists in the United States.1 Yet, 57% of dental clinic owners said they don’t offer health insurance, and 83% said they couldn’t provide the benefit due to cost.2 Not offering health insurance may seem like an effective way to keep practice expenses low, but you need to consider your long-term goals.
Keeping your employees happy and healthy is a significant factor in your business’s success. A 2021 dentist well-being survey found that 84% of dentists reported pain while working, and 14% said it affected their work.3 Offering health benefits ensures your staff can access necessary medical care to keep them healthy and productive. It also creates a positive work environment and increases morale and job satisfaction. This can improve the quality of care your staff gives to patients.
Worrying about the cost of a health benefit in your benefits package is natural. After all, many small dental offices struggle to afford traditional group health insurance. Luckily, there are affordable alternatives that can provide your employees with comprehensive coverage.
ICHRAs are a breakthrough benefits solution for small and mid-sized dental practices
A flexible option that’s gaining popularity for dental clinics is an individual coverage health reimbursement arrangement (ICHRA). An ICHRA is a tax-free health benefit that allows you to give your staff an allowance for individual health insurance premiums and out-of-pocket medical expenses. ICHRAs are an innovative solution for dental clinics of all sizes and budgets, regardless of your location.
Here’s how it works:
- With an ICHRA, you give eligible employees a monthly allowance to spend on healthcare.
- Any unused ICHRA funds stay with you if an employee leaves your practice.
- Allowance amounts are tax-deductible and free of payroll taxes for employers.
The ICHRA has no minimum or maximum contribution limits. You can also vary allowances and eligibility by employee classes, such as full-time and part-time. Your staff must have a qualifying form of individual health insurance to use the benefit.
Offering an ICHRA is a surefire way to provide your dental staff with a customized health benefit that everyone will love.
Editor's note: This article appeared in the October 2025 print edition of Dental Economics magazine. Dentists in North America are eligible for a complimentary print subscription. Sign up here.
References
1. The US dentist workforce. American Dental Association Health Policy Institute. 2025. https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/resources/research/hpi/us_dentist_workforce_2025.pdf
2. Versaci MB. HPI: Nearly half of dentists offer health insurance to employees. ADA News. Augsut 3, 2022. https://adanews.ada.org/ada-news/2022/august/hpi-nearly-half-of-dentists-offer-health-insurance-to-employees/
3. 2021 dentist well-being survey report. American Dental Association. 2022. https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/publications/dsb/2021_dentist_well_being_survey_report.pdf?
