The impact of insurance on charges for dental care

Abstract

This study assesses the effect of insurance on charges for dental care. It is hypothesized that dental practices with higher percentages of insured patients will have higher average charges for dental visits, all other things being equal. An econometric model and ordinary least squares analysis are used to test the hypothesis, based on data from the American Dental Association's 1985 Survey of Dental Practice. For the sake of homogeneity, the study is confined to solo general practitioners. Within this group, the model is applied to two practice types categorized by whether or not the practice employed a hygienist. In solo general practices with and without hygienists, a positive association between the prevalence of insureds within a practice and charges for dental care visits is shown. Hypothetical cases are used to demonstrate that an additional 18 percent of insureds within a practice results in a 6 percent increase in the average charge for a dental visit. The analysis uncovers associations between other variables and dental charges. Of particular note is the curvilinear relation between a dentist's years of experience and his or her charges for dental care.