Thursday, November 20, 2008    4:48:15 PM  Site Map

HERE'S HOW PDN WORKS

Stop-Loss Insurance Limits Your Risk

Many employers are not aware that the risk assumed through a "Self-Funded" dental plan is minimal.  This is because most dental plans have benefit limits of $1,000 or $1,500 per individual per year.  For protection against high claims, employers can purchase optional Stop-Loss Insurance at minimal costs.  If an employer qualifies, the level of total annual claims exposure (stop loss) can be set at or below the annual renewal premium of the present fully insured plan.  This policy caps employer exposure at a level that does not exceed the amount which would have been paid for a fully-insured dental plan.

Why Waste Your Insurance Dollars On Insurance Company Overhead?

According to reports filed by Delta Dental, Massachusetts' largest dental insurance carrier, with the Massachusetts Division of Insurance, only 58% of every dollar of premium collected is paid to dentists for their services.  This is the ratio for "community rated" groups, usually consisting of less than 200 plan participants.  "Community rating" means these smaller family groups are combined and are not rated on their own individual claims experience.  Since the individual groups have no information about their specific records, insurance companies can charge a premium substantially higher than actual claims.

This explains why Delta Dental retains an average of 42% of the premiums of smaller employee groups while the retention for larger groups is just 13%.  Clearly, smaller groups are subsidizing the larger ones.

PDN

A DENTAL PLAN THAT'S SURE

TO MAKE EVERY BUSINESS SMILE.

93% of America's Largest Corporations Offer Dental Insurance
Dental insurance is one of the most important employee benefits in today's workplace. But as its popularity grows, so too does its cost. MCS has designed a more cost-efficient way for small to medium sized businesses to offer this important benefit. More importantly, MCS' plan reduces costs now and maintains these lower costs for years to come.

How PDN Reduces The Costs For Dental Services
As illustrated in the table below, dental charges for the same procedure vary greatly among dentists. By avoiding the most expensive dentists and by negotiating for substantial fee discounts, PDN has arranged savings of up to 30% on the average fees charged by non-PDN dentists