Delta Dental wins nod from AARP to offer voluntary dental program in select markets

July 12, 2002

Delta Dental Plan of California to underwrite senior dental program in District of Columbia, Maryland and Texas

Alpharetta, GA — A combination of affiliated Delta Dental Plans announced today a new marketing affiliation with AARP to offer a voluntary dental program to 2.5 million eligible AARP members in Maryland, Texas and the District of Columbia.

Delta Dental Insurance Company will underwrite the program and collaborate with the Delta Plans of California. the District of Columbia and Pennsylvania to administer the new program, called the AARP Dental Insurance Plan.

Gary D. Radine, president and CEO of the holding company system that includes all the participating Delta Dental affiliates working with AARP, said the program fills a huge gap in the marketplace for those who can no longer obtain employer-sponsored dental benefits.

"The program is an affordably priced dental benefit designed specifically to meet the oral health needs of AARP members, many of whom face a very limited range of options in the private insurance market," said Radine. "We are 100 percent committed to making this a sustainable, viable offering that could possibly be rolled out on a much larger scale."

Radine said the program's benefit design incorporates a unique three-year incentive arrangement with AARP subscribers, whereby the scope of benefits grows over time, while member premiums are guaranteed to remain the same for the first three years of continuous enrollment.

"Internet administration and the growing popularity of the web among people who are 50 years of age and over may prove valuable in making this program work," notes Radine. "Our web site is proving to be one of the easiest ways to access program information for millions of enrollees, and will help us operate a program like this more affordably."

Delta Dental Insurance Company, with about 1.2 million enrollees in 10 states, is part of a larger parent holding company system that includes the other Delta Plans collaborating on the AARP program. Collectively, the holding company system produced $3.6 billion in revenues last year, and covers 18.7 million subscribers in 16 states plus the District of Columbia. Its affiliates are members of the national Delta Dental Plans Association, headquartered in Oak Brook, Ill.

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