Insurance Costs for Dentists?

[absolutely]

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Are disability and insurance costs for a private practicing dentist included in practice expenses, or is that something that is going to come out of a dentist's net income. Also, does anybody know how much those types of costs would be. I don't really know too much about business.

I wonder because I am trying to get a feel for how tight money is going to be coming out of dental school and I don't know what to think of average net income figures for dentists I am finding on the internet. And I realize starting dentists aren't exactly going to be making $150,000 a year, though maybe a few will.

 

[LIDO]

Your question would be best answered if posed in the dental forum.......those in the field will have better knowledge.

 

[sonylarkhi]

Are disability and insurance costs for a private practicing dentist included in practice expenses, or is that something that is going to come out of a dentist's net income. Also, does anybody know how much those types of costs would be. I don't really know too much about business.

I wonder because I am trying to get a feel for how tight money is going to be coming out of dental school and I don't know what to think of average net income figures for dentists I am finding on the internet. And I realize starting dentists aren't exactly going to be making $150,000 a year, though maybe a few will.

Disability insurance, malpractice insurance, medical insurance are things typically not covered for an associate when you're first looking for a job and will have to come out of your net income (i.e. your pocket). Unless you get a job at one of those bigger chains who offer a lot of benefits, private offices will make you buy these yourself. Malpractice for the first year out for a GP is discounted and typically runs about $1500/year (this number goes up depending on how many surgical procedures you do and what the practice encompasses). Disability is about $70/month and medical insurance is very pricey at about $500/month (keep in mind these are approximate numbers). First year out expect to make about 80-120k/year (more or less depending on location), and and you can calculate those expenses and on top of that the loan repayment which starts as soon as you graduate. Then add on top of that licensing fees, membership dues for any associations, DEA fees etc. I think the key is to work as an associate only until you feel comfortable in your abilities and move to ownership asap, because that is where you will make the most income. It's a scary thought and sort of overwhelming, but we're all in it for the long run and sooner or later, it'll pay off!!

 

[tamkhan]

What comes under disability insurance, exactly? Would an illness come under disability or medical insurance? How does this work?

 

[gryffindor]

My male friends pay over $100/month for disability insurance; as a female I pay even more. I wish it was $70/month like sonyalarkhi posted, I don't know anyone who gets it for so little.

 

[charlestweed]

Here are some of the insurances and fees that I currently pay:

Malpractice ins: 3000/year
Disability ins: 1900/year
Medical ins: 600/month (2 adults and 2 dependents)
Whole Life ins: 380/month
Worker comp ins: 1800/year
Business ins: 2400/year
Dental license fee: 365/2year
DEA: none (most orthodontists don’t have DEA license😀). My wife pays about $550/3years.

What comes under disability insurance, exactly? Would an illness come under disability or medical insurance? How does this work?

Disability insurance helps pay for your living expenses when you become disabled (ie. carpal tunnel syndrome, AIDS, cancer, automobile accident etc). When your disability prevents you from practicing dentistry, you will be eligible to collect monthly payments (my plan pays about $6000/month) from the disability insurance company. Medical insurance only pays for the medical treatment (ie hand/ wrist surgery for the carpal tunnel syndrome).

 

[presentationmal]

What comes under disability insurance, exactly? Would an illness come under disability or medical insurance? How does this work?

I have the same doubt . Can any one suggest me.

 

[tamkhan]

Here are some of the insurances and fees that I currently pay:

Malpractice ins: 3000/year
Disability ins: 1900/year
Medical ins: 600/month (2 adults and 2 dependents)
Whole Life ins: 380/month
Worker comp ins: 1800/year
Business ins: 2400/year
Dental license fee: 365/2year
DEA: none (most orthodontists don’t have DEA license😀). My wife pays about $550/3years.




Disability insurance helps pay for your living expenses when you become disabled (ie. carpal tunnel syndrome, AIDS, cancer, automobile accident etc). When your disability prevents you from practicing dentistry, you will be eligible to collect monthly payments (my plan pays about $6000/month) from the disability insurance company. Medical insurance only pays for the medical treatment (ie hand/ wrist surgery for the carpal tunnel syndrome).

Thanks!

 

[NileBDS]

Are disability and insurance costs for a private practicing dentist included in practice expenses, or is that something that is going to come out of a dentist's net income. Also, does anybody know how much those types of costs would be. I don't really know too much about business.

I wonder because I am trying to get a feel for how tight money is going to be coming out of dental school and I don't know what to think of average net income figures for dentists I am finding on the internet. And I realize starting dentists aren't exactly going to be making $150,000 a year, though maybe a few will.

If you're an associate, most employers will offer disability/malpractice as a perk of employment (along with health insurance, CE, ...). If you decide to purchase your own practice and be your own boss, obviously you would be responsible for all this for both yourself and your employees, which would come off of your gross income as overhead expenses.

Avg. malpractice for a new general practitioner: $1300 - $2000 per year.
Avg. net income (take home) for a new associate general practitioner: $100K - $120K per year.
Money can be as tight or abundant as you like, depending on just how you budget. How soon would you like to be debt free ? How much student loans have you accrued ? Will you be buying a house with a $3,000 mortgage, or renting a modest 2/3 bedroom for $1,000 ?

Avg. $300,000 student loans at 10 years re-payment schedule:
1st year out of school (associate): $100,000 (income) - $30,000 (uncle sam) - $36,000 (student loan payments @ $3,000/month) = $34,000 (YOUR BUDGET).
5th year out of school (associate): $150,000 (income) - $40,000 (uncle sam) - $24,000 (student loan payments @ $2,000/month) = $86,000 (YOUR BUDGET).
5th year out of school (owner): $200,000+ (income) - .... - .... - .... = $$$$$

This is obviously a dramatic example, but you get the picture ...

 

[charlestweed]

All the employers (except Western Dental) that I’ve worked for don’t pay for any of the insurance plans that I mentioned above. Before starting a new job, I have to provide proof of malpractice insurance with minimum 1mil/3mil coverage (anything less will not be acceptable). Western Dental (in CA and AZ) is the only company that I know that pays the malpractice insurance for all associate dentists and limited medical insurance for managing dentists.

 

[NileBDS]

All the employers (except Western Dental) that I've worked for don't pay for any of the insurance plans that I mentioned above. Before starting a new job, I have to provide proof of malpractice insurance with minimum 1mil/3mil coverage (anything less will not be acceptable). Western Dental (in CA and AZ) is the only company that I know that pays the malpractice insurance for all associate dentists and limited medical insurance for managing dentists.

Were you hired as an associate dentist or independent contractor ?

 

[gryffindor]

Where you hired as an associate dentist or independent contractor ?

In my case, getting no benefits applied to both. I was hired as an "associate" in one office (income reported on a W-2) and as an "independent contractor" in another (income reported on a 1099). There is no difference in the wording when you get out of school. Both are just fancy terms that translate to the same thing: employee dentist. The only thing they paid me was the salary that we agreed upon when I started working. No perks, no benefits, nothing. Just the privilege of having a paycheck. If I showed up to work, I got paid. If I scheduled a day off, I didn't get paid. From talking to my friends, most of them were hired in scenarios like this. This is especially true in saturated areas where new dentists are a dime a dozen and potential employer dentists don't have to offer you any benefits to get a newbie dentist to work for them. Everyone I know pays their own disability insurance and malpractice. Health insurance is either through a spouse or another thing to pay for out of pocket. One colleague teaches part-time just so he could join the university's health plan.

 

[Daurang]

charlestweed...why are you buying whole life for $4500 a year? You should just pay $500/year for term life and keep the $4000 yearly difference for yourself. There is nothing your agent can do with your money that you can't do yourself, and he enriches himself with a 20% yearly commission off your money for eternity until you cancel the policy. When you cash out the saving element of your whole life policy, you'd end up with much less money than you thought you had because a big chunk of your money already went to his commission.

 

[charlestweed]

In my case, getting no benefits applied to both. I was hired as an "associate" in one office (income reported on a W-2) and as an "independent contractor" in another (income reported on a 1099). There is no difference in the wording when you get out of school. Both are just fancy terms that translate to the same thing: employee dentist. The only thing they paid me was the salary that we agreed upon when I started working. No perks, no benefits, nothing. Just the privilege of having a paycheck. If I showed up to work, I got paid. If I scheduled a day off, I didn't get paid. From talking to my friends, most of them were hired in scenarios like this. This is especially true in saturated areas where new dentists are a dime a dozen and potential employer dentists don't have to offer you any benefits to get a newbie dentist to work for them. Everyone I know pays their own disability insurance and malpractice. Health insurance is either through a spouse or another thing to pay for out of pocket. One colleague teaches part-time just so he could join the university's health plan.

Yeah, it's pretty much the same for me. I am hired as independent contractor.

 

[charlestweed]

charlestweed...why are you buying whole life for $4500 a year? You should just pay $500/year for term life and keep the $4000 yearly difference for yourself. There is nothing your agent can do with your money that you can't do yourself, and he enriches himself with a 20% yearly commission off your money for eternity until you cancel the policy. When you cash out the saving element of your whole life policy, you'd end up with much less money than you thought you had because a big chunk of your money already went to his commission.

A lot of my friends told me the same thing that you told me. 380/month is just for my plan; my wife also pays similar amount for hers. Neither my wife nor I are good at investing our money. So we thought whole life insurance would give us the life insurance that we want and an opportunity to invest our money. We certainly make this insurance agent rich because we also buy our home, medical, life, automobile, and business insurance from him.

It’s actually not that bad. The last month report showed that my net surrender value (the amount that I would receive if the plan was terminated) was slightly higher than what I have put in for the past 6 years. So our life insurance is basically “free.”

 

[Daurang]

A lot of my friends told me the same thing that you told me. 380/month is just for my plan; my wife also pays similar amount for hers. Neither my wife nor I are good at investing our money. So we thought whole life insurance would give us the life insurance that we want and an opportunity to invest our money. We certainly make this insurance agent rich because we also buy our home, medical, life, automobile, and business insurance from him.

It’s actually not that bad. The last month report showed that my net surrender value (the amount that I would receive if the plan was terminated) was slightly higher than what I have put in for the past 6 years. So our life insurance is basically “free.”

REALLY??? Why don't you cash out now and see what is ACTUALLY printed on the check; you can alway buy the policy again. If your agent is mutually making you rich, then I understand.

 

[charlestweed]

REALLY??? Why don't you cash out now and see what is ACTUALLY printed on the check; you can alway buy the policy again. If your agent is mutually making you rich, then I understand.

We’ll do that when we are about to retire (hopefully in 25 years)……or when one of our 2 kids gets married🙂. To me, it’s just one of a few ways to save our money (like a cd saving account).