Delta Dental companies save clients
more than $1.4 billion in 2005
July 12, 2006
Cost management measures pay off in substantial customer savings
San Francisco — Delta Dental of California, Delta Dental of Pennsylvania and affiliated Delta Dental companies in 16 states plus the District of Columbia today reported more than $1.4 billion in savings for clients and enrollees last year as a result of cost management measures.
Officials with the affiliated Delta Dental member companies said the savings amounted to 25 percent of the $5.8 billion in total submitted claims. The largest portion of savings – $489 million – occurred as a result of Delta Dental’s contractual fee agreements with dentists.
Delta Dental’s total cost management system (known as The Delta Dental Difference®) also netted $304 million in savings by identifying non-covered services, $187 million through automated and manual claims review processes, $163.5 million with eligibility verification, $158.5 million in identified services that network dentists agree not to charge to Delta or the patient, and $147 million stemming from out-of-network limitations.
“These numbers reflect our dedication to saving money for both our group customers and our enrollees at a time when the cost of health care continues to rise,” said Gary D. Radine, president and CEO. “Ultimately, we think the true value of a dental plan is measured not only in the cost of premiums and/or administrative fees, but in the overall savings a carrier can achieve when the total cost of covered services are taken into account.”
Delta Dental of California, Delta Dental of Pennsylvania, Delta Dental Insurance Company and their affiliates are all part of a San Francisco-based holding company with an estimated 21 million enrollees nationwide. They are also all part of the Delta Dental Plans Association, the nation’s largest dental benefits system, whose nationwide programs today cover more than 46 million of the approximately 159 million individuals with dental benefits.
Note to Editors: A color pie chart illustrating the breakdown of cost management savings is available on request.
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