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
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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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