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March 2025
The U.S. dental insurance market size is calculated at USD 90.02 billion in 2024, grew to USD 97.97 billion in 2025, and is projected to reach around USD 209.46 billion by 2034. The market is expanding at a CAGR of 8.84% between 2025 and 2034. The rising prevalence of dental disorders, favorable government policies, and technological advancements drive the market.
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Dental insurance refers to a health insurance plan that covers dental care costs. It helps by effectively budgeting for the price of maintaining good oral health. Regular dental exams help prevent and identify more serious dental problems, which may minimize cost. Dental insurance enables affordable care, prioritizing people’s oral health. The different types of dental insurance include premium, deductible, coinsurance, and copay. In some plans, the customer has to pay more upfront and less during services, while it is the opposite in other plans. Dental insurance can either be taken as part of the health insurance or as a separate dental plan.
The rising prevalence of dental disorders in the U.S. facilitates patients to opt for dental insurance policies. The increasing adoption of advanced technologies in dental clinics and hospitals also boosts the market. The availability of affordable plans and a wide range of options favors customers choosing the plan based on their requirements. Additionally, favorable government policies support market growth. The increasing geriatric and pediatric population and growing awareness about dental insurance potentiates the market.
Artificial intelligence (AI) has been found to play a vital role in diverse aspects of dental insurance. AI benefits both the customers and insurers, revolutionizing the market. It helps individuals to find the right dental insurance plan from a wide range of options. For insurers, AI can streamline the entire workflow of an insurance company. It can organize and collect patient insurance data and validate it against a vast repository of information. It can also significantly improve the process of dental insurance verification, enhancing accuracy, precision, and efficiency. Additionally, AI can enable insurers to detect fraud automatically. It can analyze real-time patient data, improving more informed decision-making and customer service within the dental insurance industry. Thus, AI leads to scalable automation, ensures ROI, and enhances payer-provider communication.
Affordable Plans
The major growth factor of the U.S. dental insurance market is the availability of affordable plans. Several dental insurers provide affordable and customized plans to their clients, offering more benefits. This helps them stay competitive in the market and strengthen their market position. Some dental insurance plans start from $1 a day, enabling more and more individuals to afford such plans and increasing the affordability and accessibility of dental care. The affordability and superior services also help build trust among customers. Affordable plans also provide access to a nationwide network of more than 445,000 dental healthcare providers. Some corporate offices in the U.S. offer dental insurance to their employees and their family members. Such plans provide in-network coverage on preventive, basic, and major care.
Stagnant Reimbursement Rates
The market faces formidable challenges, including stagnant reimbursement rates, the Medicaid redetermination process, and the complex billing process. Reimbursement rates do not increase with inflation, impacting the financial sustainability of healthcare practices and limiting access to care. The lack of dental insurance transfers the patient’s unmet oral healthcare costs to the medical system. According to the CareQuest Institute for Oral Health, an estimated 68.5 million individuals in the U.S. lacked dental insurance in 2023.
Favorable Government Policies
The future of the U.S. dental insurance market is promising, driven by favorable government policies. The rising incidences and prevalence of dental disorders favor the market. It is estimated that, on average, 34 million school hours are lost each year due to untreated dental care, and more than $45 billion is lost in U.S. productivity annually. Hence, the U.S. government has released several initiatives and policies to promote oral health. The Office of Disease Prevention and Health Promotion launched “Healthy People 2030,” focusing primarily on reducing tooth decay and other oral health conditions, enabling people to get oral healthcare services. The U.S. Office of Personnel Management offers dental insurance to federal employees and veterans through the “Federal Employees Dental and Vision Insurance Program” (FEDVIP). Such government policies and initiatives encourage common people to take good care of their oral health, promoting the purchase of dental insurance among Americans.
By coverage, the dental preferred provider organizations (DPPO) segment held a dominant presence in the U.S. dental insurance market in 2024. Dental PPO plans offer lower premium rates and expanded choices that many other dental insurance plans don’t offer. PPO allows patients to choose from a network of dentists or providers with pre-negotiated discounted services, enabling them to save money. Delta Dental claims that one adult saves 40% with their PPO Basic and two adults save 30% with their PPO Premium. The plan is mostly preferred by individuals who have a doctor or medical team that does not belong to the plan.
By coverage, the dental health maintenance organizations (DHMO) segment is predicted to witness significant growth in the market over the forecast period. DHMO provides superior benefits compared to DPPO. It has lower premium rates, making it affordable for low- and middle-income groups. DHMO provides services to patients from an in-network primary care provider. DHMO plans encourage people to get regular dental check-ups by clearly defining out-of-pocket costs. It covers services and expenses such as fillings, crowns, and implants.
By type, the preventive segment held the largest share of the U.S. dental insurance market in 2024. The rising prevalence of dental disorders and favorable government policies boost the segment’s growth. This creates awareness among the general public, enabling them to prevent dental disorders. Healthy dental habits can help reduce cavities, gum diseases, and gingivitis. Preventive dental insurance provides 100% coverage to patients. It mostly involves routine cleanings, fluoride treatments, and X-rays. Early identification of dental disorders minimizes dental treatment and cost by ensuring preventive care. Since the latest research correlates dental issues with chronic disorders, people prefer regular dental check-ups.
By type, the basic segment is anticipated to show lucrative growth in the market during the forecast period. Basic dental insurance plans provide around 75-80% coverage, offering additional benefits or premium add-ons. Basic services generally include simple fillings or emergency treatment for dental pain, subject to deductible and coinsurance. It is widely preferred due to reduced treatment charges and tax benefits. The increasing number of root canal procedures augments the segment’s growth. It is estimated that around 41,000 root canals are performed each day in the U.S.
By demographic, the senior citizens segment led the U.S. dental insurance market in 2024. The increasing geriatric population potentiates the segment’s growth. The Population Reference Bureau reported that there were around 58 million in 2022, and projected to reach 82 million by 2050. The geriatric population has more chances of developing dental disorders. Around 96% of all non-edentulous adults develop tooth decay in their lifetime. Since the geriatric population is also more prone to chronic disorders, preventing dental disorders is essential.
By demographic, the adult segment is projected to expand significantly in the market in the coming years. The increasing awareness about oral health and the rising population promote the segment’s growth. The availability of dental insurance to adults through corporate offices fuels the segment’s growth. Some offices provide dental insurance to employees and their family members, covering a large population of adults. This encourages them to maintain good oral health and hygiene.
The U.S. dental insurance market is positively impacted by several factors, such as the increasing number of dental disorders. According to the Centers for Disease Control and Prevention (CDC), one-quarter of U.S. adults ages 20-64 years have at least one untreated cavity. The presence of a wide range of dental insurance options, including both public and private companies, propels the market. Medicare and Medicaid Services offer dental insurance to about 25.5 million and 23.8 million Americans as of 2023. The advent of robotics, AI, and 3D printing technologies in dental clinics in the U.S. increases the overall cost of the treatment, limiting the affordability of certain individuals. This raises the need for dental insurance to receive state-of-the-art treatment. Moreover, the rising number of dental clinics and dentists in the U.S. also contributes to market growth. There are around 60.4 dentists per 100,000 individuals in the U.S., accounting for 202,304 active dentists as of 2023.
James W. Hutchison, President & CEO of Delta Dental Plans Association, commented that more than 86% of U.S. adults believe that dental insurance is essential to protect their oral and overall health. He also said that dental benefits are essential to providing access to oral healthcare.
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March 2025
March 2025
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February 2025