Dental Coverage:

The Olympia Health and Dental Plan does not restrict the types or amounts of dental expenses that are eligible for your plan. Basic dental care such as teeth cleanings and x-rays can be covered in addition to major dental work such as bridges, crowns, root canals and braces.

Orthodontics / Braces:

Paying for braces can be a painful experience! When you consider the fact that braces can cost more than $6,000 (on average) and you have to pay for them personally, with after tax dollars, it makes the Olympia Health and Dental Plan very appealing to small business owners.

Without an Olympia Health and Dental Plan, these braces could end up costing close to $10,000 when you include the income tax that has already been paid!

With an Olympia Health and Dental Plan in place, the total cost would be $6,600. This is a savings of more than $3,000 on a single expense!

How did we calculate these savings?

Personal income of $10,000 (at a 40% tax rate) would leave $6,000 “after-tax” to pay for this expense.

Alternatively, you can have your business pay for the expense ($6,000) plus a 10% administration fee ($600) and deduct the entire cost as a business expense.

What if I already have dental insurance in place?

Dental insurance companies will typically cover a small portion of major dental work (often 50%) and in most cases there will be annual limits and/or lifetime limits placed on specific types of expenses. Many insurance plans have a $1,500 lifetime limit on braces. So even if you have a health and dental insurance plan in place, the majority of the cost will still not be covered. This uncovered portion would be an eligible expense for the Olympia Health and Dental Plan.

Example:

Total cost for braces:	$6,000
Insurance coverage:	$1,500 (50% of bill up to $1,500 maximum)
Uncovered amount:	$4,500 (eligible for the Olympia Health and Dental Plan)

In this situation, there is a $4,500 dental bill remaining after the insurance company has paid their portion. There are really only two options:

Pay for the expense personally and use the Medical Expense Tax Credit (usually very ineffective)
Use Olympia Benefits to create a full deduction for the braces, and take $6,000 tax free out of your corporation.

If you need to pay the bill anyway, it makes much more sense to run it through your company.

Root Canals, Bridges, Crowns:

Major dental work can be expensive even under the best circumstances. Fortunately for small business owners they have the option of using Olympia to help reduce the cost.

For a small business owner with a major dental bill of $2,000 the Olympia plan can save more than $1,000 in unnecessary tax (at a 40% tax bracket). Considering the income tax paid, if you earn $3,300 in personal income and remove 40% in taxes ($1,320) you are left with approximately $2,000 to pay the dentist.

As an alternative to paying $1,320 in income tax, you can pay Olympia Benefits $200 as an administration fee (10% of the $2,000 dental bill) and keep the difference in your company! That is a savings of more than $1,000 on just one dental expense!

When you consider the annual health and dental costs for your family, (which may surprise you if you add it up!) it is not uncommon for businesses to save thousands of dollars on an annual basis using an Olympia Health and Dental Plan.