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A ARP Dental Insurance Plan Serving the individual dental insurance needs of the 50+ population Dr. Lowell Daun. Available dental programs for individuals. Dental Discount Plans Not insurance Percentage discount for specific dental treatments HMO Capitation plan
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AARP Dental Insurance PlanServing the individual dental insurance needsof the 50+ populationDr. Lowell Daun
Available dental programs for individuals • Dental Discount Plans • Not insurance • Percentage discount for specific dental treatments • HMO • Capitation plan • Pre-assigned provider office • PPO • Fee-for-Service program • Extensive provider network with providers agreeing to pre-negotiated reduced rates • The ability to see an out-of-network dentist at a higher out-of-pocket cost
AARP Program Accessibility • Available in 49 states plus DC and Virgin Islands
Where is the plan most successful? • California • Florida • New York • Pennsylvania • Texas
Choice of two benefit designs Premium rates range from $38 - $51 monthly for a single person 2-year rate guarantee 4 payment options 12-month waiting period for major restorations, periodontics and prosthodontics PPO program AARP Program Benefit Design
AARP Program Benefit Summary • * Benefit level available only when visiting a Delta Dental PPO dentist. • ** No deductible required for diagnostic or preventive services under Plan A.
Who purchases this plan? • Individuals 50 and over, such as: • Retirees without dental benefits • Working adults without employer-sponsored benefits • Typical psychographics: • Affluent in terms of household income and net worth • Well-educated • Aged 60-75 • Female • Married • Financially savvy, like to shop, technically savvy, live the fine life
What makes this population different? • Lack of availability to true private dental insurance • Less than two out of every ten older Americans are covered by private dental insurance (DHHS “Oral Health in America – 2003) • No more than 20% of Americans 75 years of age and over have dental insurance (Centers for Disease Control and Prevention – 2005) • Oral Health America gave the nation on average a final grade of a “D” for private dental coverage in a special grading report on “The oral health of Older Americans” (Oral Health in America – September 2003)
Comparable dental programs • Only one other individual/voluntary program is available to this population: TRICARE Retiree Dental Program • Department of Defense contract for retired military and their eligible dependents, administered by Delta Dental • Very similar to AARP Dental Insurance Plan’s benefit structure with comprehensive coverage • 100% voluntary, premiums paid by the enrollee
Key elements of a successful dental plan • Understanding the needs of the senior market • Comprehensive coverage • Affordable price • Network size • Quality of network dentists
Marketing channels • Direct Mail • to current AARP members • Print Advertising • in AARP publications • Online Advertising • aarp.org and other sites of interest to seniors
What else do they want? • Third cleaning • Implants • No waiting periods • Increased maximums
Program Administration • Administrative Requirements • More complex than with the traditional commercial client • Call volume • Regulatory requirements • Enrollment Rollout • Original forecasts assumed all states approved by September 2004 • Many key states (including CA, FL, NJ, NV, & WA) were not available until early 2005 • As of June 2007, the only remaining state is MA
Program Utilization • The first members to join the plan were the most costly members • Once the demand was met, the experience and needs were more favorable • Maximum Utilization • First year members rarely reach their annual maximum • Once full benefits are reached, the number of members reaching their maximum increase towards normative levels • Utilization is remaining higher than expected overall • Procedures being used are closely resembling Delta Dental’s Commercial experience with this demographic
AARP Program Results to Date • As of June 2007 • 182,222 total members • Most successful product launch among AARP Healthcare Option (HCO) products • Highest requested product among HCO products in 2005—2006
Innovations • Plan designed with the senior market in mind • Periodontal maintenance cleanings and denture repair 1st year benefits • Expanded benefits under consideration • Third cleaning • Implants
AARP Dental Insurance PlanContact Information • Toll free: 1- 866-583-2085 • Web site: www.deltadentalins.com/aarp