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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




                                   2
AARP Program Accessibility

• Available in 49 states plus DC and Virgin Islands




                           3
Where is the plan most successful?

• California
• Florida
• New York
• Pennsylvania
• Texas




                  4
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

                         5
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.



                6
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




                                      7
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)



                                 8
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




                       10
Marketing channels

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



                         11
What else do they want?

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




                  12
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




                                   13
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


                                 14
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


                     15
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



                     16
AARP Dental Insurance Plan
Contact Information


• Toll free: 1- 866-583-2085

• Web site: www.deltadentalins.com/aarp




                      17

				
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