How Federal Layoffs Could Impact Your Practice – And How to Prepare
As economic uncertainties grow and federal workforce reductions become a reality, dental practices—especially those serving a high concentration of government employees—must prepare for the potential impact.
Our responsibility extends beyond routine dental care; we must find ways to support our patients and community during times of financial instability.
Firsthand Experience
Having worked in the dental industry for 23 years, and with our practice located just two blocks from the National Institutes of Health (NIH) in Bethesda, Maryland—only a few miles from Washington, D.C.—I have seen firsthand how government job losses and or shutdowns affect not only patients but also the businesses in the community as well. Federal employees play a vital role in the economic stability of our region, and when their jobs are cut, the consequences ripple outward.
Real Patient Concerns and the Need for Action
The ultimate reality is that the loss of federal jobs translates to the loss of insurance benefits, delayed treatment decisions (or rejection of them altogether), as well as changes in patient behavior, such as putting off preventative care appointments or changes in dental habits due to depression and anxiety. In the past two weeks alone, multiple federal employees have contacted our office seeking urgent appointments, fearful that their job loss—and the subsequent loss of dental benefits—could prevent them from receiving care in the future.
Without coverage, some have expressed concerns that they may not be able to return for routine visits at all.
When I learned about the significant reduction in the federal workforce and the vast number of people it would impact, I knew immediate action was necessary. One of the first concerns that came to mind was how these patients would maintain access to dental care after losing their jobs and, consequently, their insurance benefits.
Navigating Insurance Options
Through research, I discovered that terminated federal employees cannot extend their coverage through FEDVIP (Federal Employees Dental and Vision Insurance Program). However, in many cases, they may have the option to extend their benefits through COBRA (Consolidated Omnibus Budget Reconciliation Act).
One of the most critical steps we, as office managers, can take in response to these workforce reductions is to proactively reach out to insurance carriers, employers, or administrators of federal dental plans to determine whether COBRA coverage is available for terminated employees.
Many patients may be unaware that this option exists, and by providing them with this information, we can help them make informed decisions about maintaining their dental coverage during this uncertain time.
Creating a Financial Solution
The next step I took was implementing a membership plan—an immediate and essential solution designed to support federal employees before they lose their jobs and insurance benefits. This plan helps cover the cost of preventive services, ensuring that patients can continue to receive routine care without financial stress.
More importantly, it reassures them that our practice is committed to their well-being and has a plan in place to support them during this challenging time.
In addition to launching the membership plan, we introduced an additional third-party financing option. This provides patients with greater flexibility in managing unexpected dental expenses, allowing them to access necessary care even if an emergency or unforeseen procedure doesn’t fit into their budget. By expanding payment options, we aim to remove financial barriers and help patients prioritize their oral health.
Direct Patient Communication
Finally, we took proactive steps to communicate directly with our patients affected by these changes. We sent targeted newsletters and texts to all patients with federal dental plans, offering free insurance consultations to help them better understand their remaining benefits and how to maximize their coverage before any potential job loss as well as making sure they were aware of all of the things we have implemented to support and reassure them that we are there for them now.
Our Ongoing Commitment
Now more than ever, we must stand by our patients and adapt to their evolving needs. By fostering trust and providing thoughtful solutions, we can continue to make a difference in the lives of those who depend on us, even in the face of uncertainty.
About the Author
Amanda Matthews, FAADOM
Amanda Matthews is a dedicated and experienced dental office manager in Bethesda, MD, where she has been a valued member of the same practice for over 22 years. Passionate about enhancing patients’ lives through smile transformations, she is committed to helping individuals improve their self-confidence and overall well-being.
With expertise in patient relations, billing and insurance processing, and fostering team engagement in charity events, Amanda plays a crucial role in maintaining the smooth operation of the office while ensuring a welcoming and supportive environment for both patients and staff.
