Often for benefit plans such as dental plans, your organization will need to setup more than one record for each benefit plan so that the cost for each benefit plan and its various coverage options is fully defined.
Three or more Benefit Cost Codes may be necessary to describe a dental benefit plan and its coverages and costing. For examples, see the following sample descriptions of Benefit Cost Codes for dental plans:
In this case, a dental plan is based on set annual costs for the benefit according to the coverage selected. The Benefit Amount field is neither rounded nor completed, so the Rounding Rule 0, No Rounding is left selected in both examples.
Benefit Costs Code for Family Dental Costing Example
Example of Costing for Employee Only Dental Plan Coverage
For employee only coverage, D1, Employee Only is selected for the Coverage Code, since this benefit plan costing applies to the dental benefit when the dental plan only covers the employee.
For this scenario, the plan will cost each employee $250 dollars per year and will cost the employer $150 dollars per year. So, the option to Calc Benefit Cost in Dollars is selected, and the annual amount of 250.0000 is entered in the Annual EE Cost field, while the annual amount of 150.0000 is entered in the ER Annual Cost field.
The code is Active and its Effective Date has been reached, so the benefit costing is in service.
Example of Costing for Family Dental Plan Coverage
For family coverage, DF, Family Coverage is selected as the Coverage Code, and due to the expanded coverage, the cost to each employee for the plan increases.
Now, the cost to the employee each year increases to $500 while the employer's cost remains the same at $150. Therefore, the Annual EE Cost for family coverage for the dental plan is entered as 500.0000, and the Annual ER Cost is entered as 150.0000.
The code is Active and its Effective Date has been reached, so the benefit costing is in service.