AARP Dental Insurance Plan Serving the individual dental by bfc95511

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									AARP 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
  – 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




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AARP Program Accessibility

• Available in 49 states plus DC and Virgin Islands
                                                                AARP National Rollout February 1, 2007

          Alaska (AK)                                                                                                                                                                          New
             DDIC
                                                                                                                                                                                             Hampshire
                                                                                        North Dakota                                                                                         (NH) DNNE
                                                                Montana                     (ND)
                            Washington                                                         DN           Minnesota                                                           Vermont
                                                                 (MT)                                         (MN)
                             (WA) DN                             DDIC                                                                                                           (VT) DNNE
                                                                                                                 DN                                                                                    Maine
                                                                                                                            Wisconsin                                                                  (ME)
                           Oregon                                                      South Dakota                            (WI)                                                                      DN
                                              Idaho                                        (SD)
                            (OR)               (ID)
                                                                                                                               DN
                              DN                                  Wyoming                      DN                                                                                                             Massachu-
                                               DN                                                                                              Michigan                       New York (NY)                     setts
                                                                   (WY)                                                                                                                                       (MA) DNNE
                                                                        DN                                       Iowa                           (MI) DN                               DDIC
                                                                                         Nebraska                 (IA)
                                                                                                                                                                       Pennsylvania                            Rhode
                                                                                           (NE)                   DN                                                                                           Island
                                                                                               DN                                                                          (PA)                                (RI) DN
                                                                                                                               Illinois    Indiana Ohio (OH)                  DDIC
                                                         Utah                                                                     (IL)       (IN)     DN                                         Connecticut (CT) DN
                                                         (UT)           Colorado
                                     Nevada                                                     Kansas                              DN        DN                 West                             New Jersey (NJ) DN
                                                         DDIC             (CO)                                    Missouri                                      Virginia
                                      (NV)                                   DN                  (KS)              (MO)                                          (WV)                             Delaware (DE) DDIC
                                      DDIC                                                          DN
                        California                                                                                     DN                          Kentucky      DDIC      Virginia             Maryland (MD) DDIC
                          (CA)                                                                                                                      (KY) DN                (VA) DN
                           DN                                                                                                                                                                Washington D.C. DDIC
                                                                                                                                         Tennessee (TN)              North
                                                                                                     Oklahoma
                                                                                                                                              DDIC                 Carolina
                                                                                                          (OK)    Arkansas
                                                                                                                                                                    (NC) DN
                                               Arizona           New Mexico                                DN       (AR)
                                                                                                                       DN                                      South
                                                (AZ)                (NM)
           Hawaii                                   DN                  DN                                                     Missi-                         Carolina
                                                                                                                                                      Georgia (SC) DN
           (HI) DN                                                                                                             ssippi Alabama
                                                                                                                                        (AL)           (GA)
                                                                                                                                (MS)
                                                                                                                               DDIC         DDIC        DDIC
                                                                                       Texas
                                                                                        (TX)
                                                                                        DDIC                      Louisiana
                                                                                                                  (LA) DDIC

                                                                                                                                                               Florida
                                                                                                                                                                (FL)
                                                                                                                                                                DDIC




                                                                                   AARP Dental Insurance Plan
                                                                                                                                                                Puerto Rico
                                                                                                                                                                     DDIC
                                                                                     Green means approved
                                                                                    Red means not approved
                                                                                                                                                                Virgin Islands
                                                                                      Version date 02.01.07                                                            DDIC




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Where is the plan most successful?

• California
• Florida
• New York
• Pennsylvania
• Texas




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AARP Program Benefit Design

• 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

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 AARP Program Benefit Summary
                    AARP Dental Insurance Plan Benefit Summary
                                                    Percentage of     Percentage of
                                                   Allowed Amount    Allowed Amount
                                                       for Plan A        for Plan B
                                                       Delta Pays*       Delta Pays*
Diagnostic & Preventive                                 100%**              80%
Periodontal Maintenance Cleanings                         80%               50%
Denture Repair, Rebase and Relining                       80%               50%
Basic Restorations & Sealants                             50%               50%
Oral Surgery                                              50%               50%
Endodontics                                               50%               50%
                        After 12 Months Continuous Enrollment
Major Restorations (e.g., crowns, inlays/onlays)        50%               50%
Periodontics (gum disease treatment)                    50%               50%
Prosthodontics (bridges & dentures)                     50%               50%
Temporomandibular Joint Dysfunction (TMJ)               50%               50%
                        Deductibles and Maximums Per Enrollee
Calendar Year Deductible                                $50                $100
Calendar Year Maximum Benefit                         $1,200              $1,000
Temporomandibular Joint Dysfunction (TMJ)
                                                       $300               $300
treatment—Lifetime Maximum
                             Additional Benefits Available
                        With Payment at the Annual Rate Level                          * Benefit level available only when visiting a Delta Dental
Dental Accident                                       100%                 N/A         PPO dentist.
                                                                                       ** No deductible required for diagnostic or preventive
Lifetime Maximum—Dental Accident                      $1,000               N/A         services under Plan A.



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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




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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)



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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




                                9
Key elements of a successful dental
plan
• Understanding the needs of the senior
  market
 –Comprehensive coverage
 –Affordable price
 –Network size
 –Quality of network dentists




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Marketing channels

• Direct Mail
  – to current AARP members
• Print Advertising
  – in AARP publications
• Online Advertising
  – aarp.org and other sites of interest to
   seniors


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What else do they want?

• Third cleaning
• Implants
• No waiting periods
• Increased maximums




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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




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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


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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


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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



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AARP Dental Insurance Plan
Contact Information


• Toll free: 1- 866-583-2085

• Web site: www.deltadentalins.com/aarp




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