Ten years ago, a $1,000 dental cap might have made sense. Today, it barely gets your team through two cleanings and a filling. The cost of care has gone up—year after year—but most benefits plans haven’t kept pace. For startups trying to recruit top talent and build a modern workplace, that gap isn’t just a financial issue. It’s a credibility one.

Employee benefits aren’t what they used to be, not because they’ve disappeared, but because the dollar doesn’t stretch like it did ten years ago. While healthcare costs have risen steadily across Canada, many group benefits plans have stayed frozen in time. 

One of the most common areas is dental coverage.

The Hidden Cost of “Set-and-Forget” Coverage

Dental coverage is one of the most visible benefits for growing teams. According to provincial dental fee guides, the cost of basic procedures—like fillings—has risen as much as 60% over the last decade. What used to cost $140 now runs over $200 in many provinces.

But the coverage cap is still $1,000 in most plans.

That’s not just inflation. That’s value erosion. Your team is paying more out of pocket for the same service, while still being “covered.” And they notice.

Why This Hits Startups Harder 

Startups are already competing with bigger players on salary, security, and benefits. When coverage caps stay the same year after year, it sends the wrong message, that the plan was “set and forgotten.” Static benefits don’t reflect the pace or values of a growing company. A $1,000 dental cap might have been fine when you had five employees, but as your team grows, so do their expectations. 

Experienced talent compares plans, and when your coverage lags behind, it can hurt your ability to recruit and retain top performers. Worse, when employees hit their limits early in the year, it prompts a deeper question: what else hasn’t been updated? Without regular reviews, even the most well-intentioned plans can quietly lose relevance.

The Bigger Risk: Erosion Goes Beyond Dental

According to Ameritas, dental costs have outpaced general inflation for years, but the real problem isn’t just financial; it’s behavioural.

When coverage falls short, people delay care. That leads to bigger health issues, higher costs, and productivity loss. What starts as a skipped cleaning, turns into a root canal and an unplanned afternoon off. This is contributing to serious health issues, higher medical costs, and reduced productivity. In other words, insufficient coverage has real impact both personally and professionally. 

How Inflation Is Quietly Undermining Your Benefits, And What Smart Startups Should Do About It 

Startups can stay ahead of this quietly growing gap by modernizing benefit designs and without breaking the bank. 

• Audit your plan against actual costs. Look at current dental and paramedical fee guides. If your caps haven’t moved in 5+ years, they’re outdated. 
• Offer top-ups or HSAs. Even small spending accounts let employees customize support based on their real needs. 
• Communicate your intent. If you’re reviewing coverage regularly, say so. Transparency goes further than any one dollar amount.

The goal isn’t perfection; it’s more about alignment. Your benefits plan should evolve the same way your product roadmap does: with purpose.

Don’t Let Outdated Coverage Undercut a Modern Team

Outdated coverage sends a message, even if you don’t mean it to. 

When coverage stays frozen, it tells your team—and your future hires—that you’re not paying attention. That you’ve prioritized speed and scale, but not the people behind it. A static $1,000 dental cap isn’t just outdated, it’s more of a red flag.

So if you’re scaling fast, it’s time to treat your benefits like the rest of your business: adaptable, responsive, and built for what’s next. Your benefits plan doesn’t have to be perfect, but it does need to move.

See How Your Plan Stacks Up

Most startups think their benefits are competitive—until they see the data. 

Orchard’s Free Benchmarking Tool shows exactly how your plan compares to others in your space. From dental caps to spending accounts, you’ll see where you’re leading and where you’re falling behind. It’s the fastest way to spot value gaps and build a plan that grows with your team.

If you’re looking to modernize your plan before your team outgrows it, Orchard helps high-growth teams audit, design, and scale their benefits. Book a consultation today to see where you stand.