CoverCapy / Dental insurance / For employers / How much employers cover

Contribution benchmarks

How much do employers pay for dental?

Carriers quote group dental per company, so there is no published national rate. But the benchmarks are clear: employers cover about 84 percent of a single medical premium, dental is usually a smaller share, and it is shifting toward employee-paid. Here is what companies normally cover, how the choice works, and what a small business should offer.

The benchmark

What companies normally cover

The clearest reference point is medical, where the data is published every year. In 2025, employers covered the large majority of the premium and employees paid the rest.

Coverage (medical, 2025)Total premiumEmployer paysEmployee pays
Single$9,325/yr~84%~16% ($1,440)
Family$26,993/yr~74%~26% ($6,850)

Dental follows the same shape but at a smaller scale and a smaller employer share. Because dental premiums are a fraction of medical, roughly $9 to $14 per employee per month for the employer on a lean plan, the dollars are modest either way. The market norm is that employers contribute less to dental than to medical, and increasingly ask employees to carry more of it.

The dental picture

Dental is smaller, and going voluntary

~51%
of group dental is voluntary
Employee-paid, now the majority (was ~39% in 2022); NADP 2024.
+0.1%
dental premium change
Barely moved in 2024; NADP. Real value, low cost.
30% vs 70%
dental offered
Small firms vs large (500+); BLS March 2025.
~87%
of the US has dental
Population with some dental benefit; NADP 2024.
The takeaway for a small business: dental is one of the cheapest benefits to offer, prices have been flat, and you do not have to fund all of it. Even a modest contribution, or a well-run voluntary plan at no employer cost, puts you ahead of the 70 percent of small firms that offer no dental at all.

Your choice

How the contribution actually works

You decide your share, and the decision has real levers attached to it.

Pay all, part, or none. Most carriers want the employer to fund at least half of the employee-only premium to issue a plan, and that 50 percent floor is also the threshold for the federal small-business tax credit. But several carriers, including Humana, Ameritas, Principal and Beam, allow a zero employer contribution and run the plan fully voluntary, with employees paying through pre-tax payroll.

Dependents are usually employee-paid. The common structure is that the employer contributes a percentage of the employee-only rate, and employees who add a spouse or children pay the difference. That keeps the employer cost predictable while still giving the whole family access.

Paying more buys you things. A higher contribution typically lowers the participation the carrier requires and can waive waiting periods, and pre-tax payroll returns about 7.65 percent in employer FICA savings while the contribution itself is tax deductible. So the true cost of contributing is lower than the sticker.

Tax outcomes depend on entity type, payroll and state. These are estimates; consult a qualified tax advisor.

Decide your contribution with real numbers

Set your headcount and split, and see the employee cost for self, spouse and kids alongside your monthly cost.

How we know

Sources

KFF and BLS publish the medical contribution share; dental-specific employer-share benchmarks are looser, so we present medical as the anchor and dental as the smaller, increasingly voluntary line. No group dental premium is shown because carriers price each company individually.