Annual Report - Delta Dental Of Minnesota
Annual Report - Delta Dental Of Minnesota
Annual Report - Delta Dental Of Minnesota
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Annual</strong> <strong>Report</strong>
ı<br />
Creating healthy smiles is our business, and it’s our only business. Specializing in one<br />
area – oral health – has allowed us to become experts in our field. This expertise helps<br />
us to provide our customers with:<br />
• High value, tailor-made and well-managed dental plans<br />
• Access to the largest dental networks in the state and the nation<br />
• Exceptional customer service and self-service Web tools<br />
• Healthy and happy smiles<br />
In addition, as a nonprofit we give back to our communities with programs that<br />
promote oral health. And, we provide a challenging workplace for our employees, who<br />
carry out our mission of improving the oral health of our community.<br />
Both tooth decay and gum disease are preventable, which is why access to dental care<br />
is so important. Equally important is education. We want our members to know what<br />
it takes to keep their smiles healthy. That’s why we introduced several new innovative,<br />
easy-to-use educational tools on www.deltadentalmn.org, such as:<br />
The Smile Files – an online source for the latest oral health information, quizzes,<br />
games and more.<br />
Grin! – our e-magazine with something for everyone: oral-health friendly recipes, tips<br />
on floss and toothbrushes, oral health history and more.<br />
My<strong>Dental</strong>Score – an online tool that proves teeth and gums matter. It helps members<br />
make the connection between healthy teeth and gums to overall health.<br />
In addition, we've embraced social media. Our members can find valuable oral health<br />
information on Facebook, Pinterest, Twitter, YouTube, LinkedIn and our Blog. All link<br />
from our Web site.<br />
As always, we remain focused on our customers – we believe in the power of their<br />
smiles. We’re proud of the innovations we’ve introduced and with the onset of health<br />
care reform, we look forward to providing new products, new educational tools and<br />
new ways to make our customers' smiles even brighter.<br />
Rodney Young<br />
Chief Executive <strong>Of</strong>ficer and President<br />
<strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong>
Carrying on a tradition.<br />
Promoting healthy smiles.<br />
2<br />
Founded in 1969, <strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong> (<strong>Delta</strong> <strong>Dental</strong>) is a nonprofit<br />
dental benefits company with a long-standing tradition of working to improve<br />
oral health care. We do so by providing access to quality, affordable dental<br />
benefits programs and through our philanthropic efforts.<br />
Our strength and stability allow us to carry on this tradition. Our agility and<br />
flexibility help us stay current with the needs of the marketplace. We are the<br />
largest provider of dental benefits in the region and one of the largest in the<br />
nation. Key highlights of 2012 include:<br />
Premium and Administrative Revenue<br />
Operating Expenses<br />
Number of Members Nationwide<br />
Number of Claims Processed<br />
Gifts Distributed by <strong>Delta</strong> <strong>Dental</strong> and the<br />
<strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong> Foundation<br />
$1.12 billion<br />
$78.6 million<br />
3.8 million<br />
6.46 million<br />
$2.8 million<br />
A.M. Best Financial Rating A (Excellent) for 14<br />
consecutive years<br />
<strong>Delta</strong> <strong>Dental</strong> is a registered mark of <strong>Delta</strong> <strong>Dental</strong> Plans Association. <strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong> is an independent nonprofit dental<br />
services company and is an authorized licensee of <strong>Delta</strong> <strong>Dental</strong> Plans Association of Oak Brook, Illinois. Data presented represents<br />
sum of <strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong> (insured) and DDMN ASO, LLC (self-insured) business.
<strong>Of</strong>fering great plans.<br />
Helping do good.<br />
3<br />
<strong>Delta</strong> <strong>Dental</strong> helps keep smiles healthy by providing affordable products and more ways<br />
to access dental benefits.<br />
Group <strong>Dental</strong> Plans<br />
No matter what size the group, <strong>Delta</strong> <strong>Dental</strong><br />
has a plan to meet its needs. We offer both fully<br />
insured (risk) and self-insured (administrative<br />
services only) dental benefit plans. And, we work<br />
closely with consultants, brokers and group<br />
administrators to match the plan with the group’s<br />
needs.<br />
<strong>Delta</strong> <strong>Dental</strong> offers tailor-made benefit plans<br />
to individually rated groups of 100 or more<br />
employees. In 2012, we retained about 99 percent<br />
of these groups. Just a few of the reasons why:<br />
• Cost-effective Networks<br />
• Cutting-edge Operations<br />
• Dedicated Account Manager<br />
• Responsive Member Service Team<br />
• Pricing Equating to Value<br />
<strong>Delta</strong> <strong>Dental</strong> Connect SM , our small group and<br />
broker service team, provides personalized service<br />
to help brokers and small groups choose from<br />
our variety of network and indemnity plans. But,<br />
Connect's service doesn’t stop there – Connect<br />
also helps with renewals, rates, participation<br />
guidelines, contract questions, enrollment and<br />
more.<br />
<strong>Dental</strong> Plans for Individuals and Families<br />
Everyone deserves a healthy smile. That’s why<br />
<strong>Delta</strong> <strong>Dental</strong> offers a wide range of affordable<br />
benefit plans for <strong>Minnesota</strong>ns age 18+ and<br />
their families. Plans range from preventiveonly<br />
coverage to comprehensive coverage which<br />
includes crowns, bridges and dentures.<br />
Public Programs<br />
We’re proud to offer dental benefits to more than<br />
278,000 public program enrollees in <strong>Minnesota</strong>.<br />
By partnering with dentists and health plans,<br />
we work to expand access to dental care, offer<br />
specialized customer service, coordinate care and<br />
provide information on dental benefits.<br />
We serve:<br />
• Small Businesses<br />
• Corporations<br />
• Public Entities<br />
• Unions<br />
• Professional Associations<br />
• Public Programs<br />
• Individuals and Families
Delivering superior service.<br />
Keeping members happy.<br />
4<br />
At <strong>Delta</strong> <strong>Dental</strong>, it’s personal. Whether it’s answering questions on the first call, paying<br />
claims quickly and accurately, or servicing clients, we give each customer our personal<br />
best. Our numbers speak for themselves.<br />
2012 Service Results<br />
Client Service<br />
Average phone response time (members)<br />
18 seconds<br />
Telephone inquiries resolved on first call 97.09%<br />
Abandoned call rate (members) 1.36%<br />
Claims Processing<br />
Number of paid claims<br />
6.46 million<br />
Average claim turnaround time<br />
1.10 days<br />
Claims paid within 10 business days 99.68%<br />
Our customer satisfaction rate is<br />
97.6%. Members appreciate having<br />
their claims processed quickly and<br />
accurately as well as having their<br />
questions resolved during their first<br />
call to our service team.<br />
Processing Accuracy<br />
Number of correct claims processed /<br />
total number of all claims processed 99.98%<br />
Financial Accuracy<br />
Total amount of claim dollars paid correctly /<br />
total claim dollars paid 99.99%<br />
Not only do our strong service statistics keep our members<br />
happy, they are just one of the reasons nearly 9 out of 10<br />
brokers say we are “better” or “much better” than other quality<br />
dental insurance companies they know. Agents, brokers<br />
and consultants know they can turn to <strong>Delta</strong> <strong>Dental</strong> for<br />
quality products, comprehensive networks and<br />
personalized service.
Building a better network.<br />
Providing affordable access.<br />
5<br />
We recognize the significant contributions our partner dentists make to our continued<br />
growth. Not only do they deliver quality dental benefits to our members, they promote<br />
good oral health.<br />
Dentists who belong to the network know that it<br />
will deliver patients to their offices. Plus, <strong>Delta</strong><br />
<strong>Dental</strong> focuses on easing administrative details<br />
through online tools and paying claims fast,<br />
allowing dentists to concentrate on patient care.<br />
Our large network also means:<br />
• Members have access to care; their dentist<br />
most likely participates in the <strong>Delta</strong> <strong>Dental</strong><br />
network. And, since network dentists agree<br />
to fees substantially lower than retail, members<br />
save money.<br />
• Employers are assured that dental coverage is<br />
affordable and convenient for their employees.<br />
• Brokers are confident that <strong>Delta</strong> <strong>Dental</strong> will<br />
provide accessible and cost-effective networks<br />
for their clients.<br />
<strong>Delta</strong> <strong>Dental</strong> Premier ® is the country's largest<br />
network. In <strong>Minnesota</strong> and the surrounding area,<br />
approximately 85 percent of dentists participate –<br />
that’s 3,065 dentists.<br />
<strong>Delta</strong> <strong>Dental</strong> PPO SM - for even deeper discounts<br />
and savings - is one of the largest PPO networks<br />
with 1,788 participating dentists in the <strong>Minnesota</strong><br />
area.<br />
DELTA DENTAL -- UNIQUE DENTISTS NATIONWIDE<br />
23,000<br />
142,000<br />
83,900<br />
DELTA DENTAL PPO<br />
DELTA DENTAL PREMIER<br />
(INCLUDES DELTA DENTAL PPO DENTISTS)<br />
NON-PARTICIPATING<br />
DENTISTS
Taking local action.<br />
Making people smile.<br />
6<br />
<strong>Delta</strong> <strong>Dental</strong> is driven by our mission to improve the oral health of the communities we<br />
serve. Our goals are straightforward:<br />
• Improve the effectiveness of care in the oral health delivery system<br />
• Raise oral health awareness<br />
• Promote prevention activities<br />
• Improve the communities we serve<br />
We support our mission and goals by investing<br />
$2.8 million in grants and donations in four<br />
areas: <strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong> Foundation,<br />
Philanthropy Program, Oral Health Outreach and<br />
Sponsorships, and Employee Involvement.<br />
<strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong> Foundation<br />
In 2012, the Foundation distributed $1.9 million<br />
in gifts to organizations that significantly improve<br />
the oral health of <strong>Minnesota</strong>ns.<br />
Philanthropy<br />
Our Philanthropy Program gave $450,000<br />
in grants to 32 organizations in 2012. These<br />
organizations help improve oral health,<br />
increase access to health services for children,<br />
and strengthen a sense of well-being in our<br />
communities.<br />
Oral Health Outreach and Sponsorships<br />
We made a difference by distributing $400,000<br />
to 40 organizations for health promotion and<br />
prevention activities. We also donated more than<br />
100,000 toothbrushes, toothpaste and dental floss<br />
to underserved populations. And, we promoted<br />
oral health at more than 70 community health<br />
fairs, with nearly 7,000 children receiving free<br />
dental screenings.<br />
Employee Involvement<br />
Employees are encouraged to engage with<br />
organizations in their local communities. In<br />
2012, our employees participated in a variety<br />
of activities, including donating blood and<br />
raising funds to help cure cancer. <strong>Delta</strong> <strong>Dental</strong><br />
of <strong>Minnesota</strong> also matched employee monetary<br />
contributions, doubling the impact.<br />
<strong>Dental</strong> disease is the most common chronic condition among children.<br />
And, yet childhood cavities are nearly 100% preventable.
Our investment in<br />
healthy smiles.<br />
7<br />
Combined Statements of Operations<br />
Dollars in thousands ($000) Years Ended December 31,<br />
20ı2<br />
20ı1<br />
Subscription revenue, net $1,121,330 $1,126,224<br />
<strong>Dental</strong> administrative revenue $92 $1,513<br />
Investment and other income $10,766 $4,282<br />
Total revenue $1,132,188 $1,132,019<br />
<strong>Dental</strong> service claims $1,039,519 $1,045,950<br />
Operating expenses $78,561 $76,443<br />
Total expenses $1,118,080 $1,122,393<br />
Revenue over expenses $14,108 $9,626<br />
Other changes in surplus $884 $1,885<br />
Surplus, beginning of year $204,561 $193,050<br />
Surplus, end of year $219,553 $204,561
8<br />
Combined Balance Sheets<br />
Dollars in thousands ($000) Years Ended December 31,<br />
20ı2 20ı1<br />
Cash and cash equivalents $29,464 $39,740<br />
Investments $219,151 $198,838<br />
Accounts and note receivable $66,217 $64,669<br />
Property and equipment, net $5,699 $6,233<br />
Other assets $1,100 $2,207<br />
Total assets $321,631 $311,687<br />
<strong>Dental</strong> service claims $87,571 $92,641<br />
Accounts payable $7,156 $8,216<br />
Accrued expenses $939 $1,017<br />
Deferred revenue and group refunds $5,113 $4,783<br />
Due to affiliates $1,299 $469<br />
Total liabilities $102,078 $107,126<br />
Fund balance and member’s equity $212,195 $198,087<br />
Accumulated other comprehensive income $7,358 $6,474<br />
Total equity $219,553 $204,561<br />
Total liabilities and equity $321,631 $311,687<br />
<strong>Delta</strong> <strong>Dental</strong> is among the most efficiently operated dental benefit plans<br />
in the nation, with 92.7 cents of every premium dollar being paid out in<br />
dental benefits.
Board of Directors<br />
Chair<br />
Michael W. Howe, Ph. D.<br />
MW Howe Consulting, LLC<br />
Chair Emeritus<br />
John D. Somrock<br />
Consultant<br />
Vice Chair<br />
Douglas A. Alger<br />
Sr. Vice President,<br />
Human Resources<br />
American Express Financial<br />
Advisors, Inc. (retired)<br />
Secretary<br />
Bernard L. Brommer<br />
President Emeritus<br />
<strong>Minnesota</strong> AFL-CIO<br />
John M. Anderson, D.D.S.<br />
Scottsdale, AZ<br />
Susan C. Anderson, D.D.S.<br />
St. Paul, MN<br />
John W. Bluford<br />
President and Chief<br />
Executive <strong>Of</strong>ficer<br />
Truman Medical Center (Missouri)<br />
Paul F. Carlson, D.D.S.<br />
Fairmont, MN<br />
Deb S. Knutson<br />
Senior Vice President,<br />
Human Resources,<br />
Learning and Facilities<br />
Medica, Inc.<br />
R. Bruce Templeton, D.M.D.<br />
Edina, MN<br />
Rodney A. Young<br />
Chief Executive <strong>Of</strong>ficer<br />
and President<br />
<strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong><br />
Treasuer<br />
Kathleen P. Pepski<br />
Vice President, Chief Financial<br />
<strong>Of</strong>ficer and Treasurer<br />
Hawkins, Inc.<br />
Philip I. Smith<br />
Managing Director<br />
Greene, Holcomb & Fisher, LLC<br />
James R. Swanstrom, D.D.S.<br />
Duluth, MN<br />
<strong>Delta</strong> <strong>Dental</strong> of <strong>Minnesota</strong><br />
500 Washington Ave. S.<br />
Suite 2060<br />
Minneapolis, MN 55415<br />
651-406-5900<br />
1-800-328-1188<br />
www.deltadentalmn.org