Recent research shows Australians are increasingly using their savings to pay for dental treatment, affecting their retirement funds.
The Australian Tax Office (ATO) reported that 13,540 Australians withdrew $313.4 million from their superannuation to cover dental expenses last year, a significant increase from $66.4 million five years ago.
Additionally, data from the Australian Prudential (LON:PRU) Regulation Authority indicates rising out-of-pocket fees for dentistry, adding to living costs for the 53% of Australians with dental cover.
According to a National Dental Association survey, more than half of respondents delayed dental treatment in the 12 months to December 2022. Similarly, nearly four in 10 older Australians postponed or avoided dental care in the 12 months to March 2024, according to the Council on the Ageing (COTA).
No Gap, no worries
To combat the problem, ASX-listed health and travel insurer NIB Holdings Limited (nib), has introduced a No Gap dental program in collaboration with dental clinics across Australia, benefiting approximately 1.2 million eligible members.
Members visiting nib No Gap dentists for an examination, scale, clean, fluoride treatment where necessary, and required x-rays can receive these services at no cost.
Ed Close, chief executive of Australian Residents Health Insurance (arhi) at nib, said: “We know going to the dentist is a major expense. It’s a cost that really hits a household budget, whether you’re a young member, a family with kids, or a retiree."
"Research indicates that the high cost of dental treatment often leads people to delay visits, negatively impacting their overall health.
"The No Gap initiative aims to add value to members’ private health insurance by reducing these costs. nib has developed its First Choice network of allied health providers, including physiotherapists, optometrists and dentists, to offer members no gap or reduced out-of-pocket costs for services."
Close emphasised nib’s commitment to alleviating cost-of-living pressures for members.
“nib is looking at ways to deliver value to members,” he said. “We know than more than 90% of our members live in an area where we have partnered with a No Gap dental clinic, which means they can access preventative care, at no extra cost. And we are very ambitious about expanding the network and increasing the number of clinics.”
Members able to access nib’s No Gap dental clinics include those with nib’s white-label partners: Qantas, GU, ING, APIA, AAMI, Real Insurance, Suncorp, Priceline and Australian Seniors.
Surprisingly, the market hasn’t taken too kindly to nib’s initiative, with the company having lost 1.22% at time of writing.
The drop could be more a reflection of the overall market, which has so far dropped 26.00 points or 0.33% to 7,741.50.