Annual Report - Delta Dental Of Minnesota

Annual Report

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Creating healthy smiles is our business, and it’s our only business. Specializing in one
area – oral health – has allowed us to become experts in our field. This expertise helps
us to provide our customers with:
• High value, tailor-made and well-managed dental plans
• Access to the largest dental networks in the state and the nation
• Exceptional customer service and self-service Web tools
• Healthy and happy smiles
In addition, as a nonprofit we give back to our communities with programs that
promote oral health. And, we provide a challenging workplace for our employees, who
carry out our mission of improving the oral health of our community.
Both tooth decay and gum disease are preventable, which is why access to dental care
is so important. Equally important is education. We want our members to know what
it takes to keep their smiles healthy. That’s why we introduced several new innovative,
easy-to-use educational tools on www.deltadentalmn.org, such as:
The Smile Files – an online source for the latest oral health information, quizzes,
games and more.
Grin! – our e-magazine with something for everyone: oral-health friendly recipes, tips
on floss and toothbrushes, oral health history and more.
MyDentalScore – an online tool that proves teeth and gums matter. It helps members
make the connection between healthy teeth and gums to overall health.
In addition, we've embraced social media. Our members can find valuable oral health
information on Facebook, Pinterest, Twitter, YouTube, LinkedIn and our Blog. All link
from our Web site.
As always, we remain focused on our customers – we believe in the power of their
smiles. We’re proud of the innovations we’ve introduced and with the onset of health
care reform, we look forward to providing new products, new educational tools and
new ways to make our customers' smiles even brighter.
Rodney Young
Chief Executive Officer and President
Delta Dental of Minnesota

Carrying on a tradition.
Promoting healthy smiles.
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Founded in 1969, Delta Dental of Minnesota (Delta Dental) is a nonprofit
dental benefits company with a long-standing tradition of working to improve
oral health care. We do so by providing access to quality, affordable dental
benefits programs and through our philanthropic efforts.
Our strength and stability allow us to carry on this tradition. Our agility and
flexibility help us stay current with the needs of the marketplace. We are the
largest provider of dental benefits in the region and one of the largest in the
nation. Key highlights of 2012 include:
Premium and Administrative Revenue
Operating Expenses
Number of Members Nationwide
Number of Claims Processed
Gifts Distributed by Delta Dental and the
Delta Dental of Minnesota Foundation
$1.12 billion
$78.6 million
3.8 million
6.46 million
$2.8 million
A.M. Best Financial Rating A (Excellent) for 14
consecutive years
Delta Dental is a registered mark of Delta Dental Plans Association. Delta Dental of Minnesota is an independent nonprofit dental
services company and is an authorized licensee of Delta Dental Plans Association of Oak Brook, Illinois. Data presented represents
sum of Delta Dental of Minnesota (insured) and DDMN ASO, LLC (self-insured) business.

Offering great plans.
Helping do good.
3
Delta Dental helps keep smiles healthy by providing affordable products and more ways
to access dental benefits.
Group Dental Plans
No matter what size the group, Delta Dental
has a plan to meet its needs. We offer both fully
insured (risk) and self-insured (administrative
services only) dental benefit plans. And, we work
closely with consultants, brokers and group
administrators to match the plan with the group’s
needs.
Delta Dental offers tailor-made benefit plans
to individually rated groups of 100 or more
employees. In 2012, we retained about 99 percent
of these groups. Just a few of the reasons why:
• Cost-effective Networks
• Cutting-edge Operations
• Dedicated Account Manager
• Responsive Member Service Team
• Pricing Equating to Value
Delta Dental Connect SM , our small group and
broker service team, provides personalized service
to help brokers and small groups choose from
our variety of network and indemnity plans. But,
Connect's service doesn’t stop there – Connect
also helps with renewals, rates, participation
guidelines, contract questions, enrollment and
more.
Dental Plans for Individuals and Families
Everyone deserves a healthy smile. That’s why
Delta Dental offers a wide range of affordable
benefit plans for Minnesotans age 18+ and
their families. Plans range from preventiveonly
coverage to comprehensive coverage which
includes crowns, bridges and dentures.
Public Programs
We’re proud to offer dental benefits to more than
278,000 public program enrollees in Minnesota.
By partnering with dentists and health plans,
we work to expand access to dental care, offer
specialized customer service, coordinate care and
provide information on dental benefits.
We serve:
• Small Businesses
• Corporations
• Public Entities
• Unions
• Professional Associations
• Public Programs
• Individuals and Families

Delivering superior service.
Keeping members happy.
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At Delta Dental, it’s personal. Whether it’s answering questions on the first call, paying
claims quickly and accurately, or servicing clients, we give each customer our personal
best. Our numbers speak for themselves.
2012 Service Results
Client Service
Average phone response time (members)
18 seconds
Telephone inquiries resolved on first call 97.09%
Abandoned call rate (members) 1.36%
Claims Processing
Number of paid claims
6.46 million
Average claim turnaround time
1.10 days
Claims paid within 10 business days 99.68%
Our customer satisfaction rate is
97.6%. Members appreciate having
their claims processed quickly and
accurately as well as having their
questions resolved during their first
call to our service team.
Processing Accuracy
Number of correct claims processed /
total number of all claims processed 99.98%
Financial Accuracy
Total amount of claim dollars paid correctly /
total claim dollars paid 99.99%
Not only do our strong service statistics keep our members
happy, they are just one of the reasons nearly 9 out of 10
brokers say we are “better” or “much better” than other quality
dental insurance companies they know. Agents, brokers
and consultants know they can turn to Delta Dental for
quality products, comprehensive networks and
personalized service.

Building a better network.
Providing affordable access.
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We recognize the significant contributions our partner dentists make to our continued
growth. Not only do they deliver quality dental benefits to our members, they promote
good oral health.
Dentists who belong to the network know that it
will deliver patients to their offices. Plus, Delta
Dental focuses on easing administrative details
through online tools and paying claims fast,
allowing dentists to concentrate on patient care.
Our large network also means:
• Members have access to care; their dentist
most likely participates in the Delta Dental
network. And, since network dentists agree
to fees substantially lower than retail, members
save money.
• Employers are assured that dental coverage is
affordable and convenient for their employees.
• Brokers are confident that Delta Dental will
provide accessible and cost-effective networks
for their clients.
Delta Dental Premier ® is the country's largest
network. In Minnesota and the surrounding area,
approximately 85 percent of dentists participate –
that’s 3,065 dentists.
Delta Dental PPO SM - for even deeper discounts
and savings - is one of the largest PPO networks
with 1,788 participating dentists in the Minnesota
area.
DELTA DENTAL -- UNIQUE DENTISTS NATIONWIDE
23,000
142,000
83,900
DELTA DENTAL PPO
DELTA DENTAL PREMIER
(INCLUDES DELTA DENTAL PPO DENTISTS)
NON-PARTICIPATING
DENTISTS

Taking local action.
Making people smile.
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Delta Dental is driven by our mission to improve the oral health of the communities we
serve. Our goals are straightforward:
• Improve the effectiveness of care in the oral health delivery system
• Raise oral health awareness
• Promote prevention activities
• Improve the communities we serve
We support our mission and goals by investing
$2.8 million in grants and donations in four
areas: Delta Dental of Minnesota Foundation,
Philanthropy Program, Oral Health Outreach and
Sponsorships, and Employee Involvement.
Delta Dental of Minnesota Foundation
In 2012, the Foundation distributed $1.9 million
in gifts to organizations that significantly improve
the oral health of Minnesotans.
Philanthropy
Our Philanthropy Program gave $450,000
in grants to 32 organizations in 2012. These
organizations help improve oral health,
increase access to health services for children,
and strengthen a sense of well-being in our
communities.
Oral Health Outreach and Sponsorships
We made a difference by distributing $400,000
to 40 organizations for health promotion and
prevention activities. We also donated more than
100,000 toothbrushes, toothpaste and dental floss
to underserved populations. And, we promoted
oral health at more than 70 community health
fairs, with nearly 7,000 children receiving free
dental screenings.
Employee Involvement
Employees are encouraged to engage with
organizations in their local communities. In
2012, our employees participated in a variety
of activities, including donating blood and
raising funds to help cure cancer. Delta Dental
of Minnesota also matched employee monetary
contributions, doubling the impact.
Dental disease is the most common chronic condition among children.
And, yet childhood cavities are nearly 100% preventable.

Our investment in
healthy smiles.
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Combined Statements of Operations
Dollars in thousands ($000) Years Ended December 31,
20ı2
20ı1
Subscription revenue, net $1,121,330 $1,126,224
Dental administrative revenue $92 $1,513
Investment and other income $10,766 $4,282
Total revenue $1,132,188 $1,132,019
Dental service claims $1,039,519 $1,045,950
Operating expenses $78,561 $76,443
Total expenses $1,118,080 $1,122,393
Revenue over expenses $14,108 $9,626
Other changes in surplus $884 $1,885
Surplus, beginning of year $204,561 $193,050
Surplus, end of year $219,553 $204,561

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Combined Balance Sheets
Dollars in thousands ($000) Years Ended December 31,
20ı2 20ı1
Cash and cash equivalents $29,464 $39,740
Investments $219,151 $198,838
Accounts and note receivable $66,217 $64,669
Property and equipment, net $5,699 $6,233
Other assets $1,100 $2,207
Total assets $321,631 $311,687
Dental service claims $87,571 $92,641
Accounts payable $7,156 $8,216
Accrued expenses $939 $1,017
Deferred revenue and group refunds $5,113 $4,783
Due to affiliates $1,299 $469
Total liabilities $102,078 $107,126
Fund balance and member’s equity $212,195 $198,087
Accumulated other comprehensive income $7,358 $6,474
Total equity $219,553 $204,561
Total liabilities and equity $321,631 $311,687
Delta Dental is among the most efficiently operated dental benefit plans
in the nation, with 92.7 cents of every premium dollar being paid out in
dental benefits.

Board of Directors
Chair
Michael W. Howe, Ph. D.
MW Howe Consulting, LLC
Chair Emeritus
John D. Somrock
Consultant
Vice Chair
Douglas A. Alger
Sr. Vice President,
Human Resources
American Express Financial
Advisors, Inc. (retired)
Secretary
Bernard L. Brommer
President Emeritus
Minnesota AFL-CIO
John M. Anderson, D.D.S.
Scottsdale, AZ
Susan C. Anderson, D.D.S.
St. Paul, MN
John W. Bluford
President and Chief
Executive Officer
Truman Medical Center (Missouri)
Paul F. Carlson, D.D.S.
Fairmont, MN
Deb S. Knutson
Senior Vice President,
Human Resources,
Learning and Facilities
Medica, Inc.
R. Bruce Templeton, D.M.D.
Edina, MN
Rodney A. Young
Chief Executive Officer
and President
Delta Dental of Minnesota
Treasuer
Kathleen P. Pepski
Vice President, Chief Financial
Officer and Treasurer
Hawkins, Inc.
Philip I. Smith
Managing Director
Greene, Holcomb & Fisher, LLC
James R. Swanstrom, D.D.S.
Duluth, MN
Delta Dental of Minnesota
500 Washington Ave. S.
Suite 2060
Minneapolis, MN 55415
651-406-5900
1-800-328-1188
www.deltadentalmn.org