Direct Reimbursement is a self-funded dental plan, and some companies may even opt to self-administer. So how can a broker generate income from such a plan?
By selling DR plans, brokers can add revenue to their business in the following ways:
Incentive 1: Fees from a third-party administrator
When a company chooses to outsource the administration of its DR plan, part of the monthly administration fee can be paid to the broker-thus generating regular cash flow. Many companies that implement a DR plan will stay with DR, so that over the long term, DR can prove to be a reliable source of income for you year after year.
Incentive 2: One-time fee for setting up self-administered DR plans
When an employer chooses to self-administer a DR plan, the client pays a fee to the broker who has designed and implemented the plan for the company. The broker determines this fee based on market conditions. In addition, an on-going annual consulting fee can be charged to clients who wish to have their plan assessed and potentially re-designed based on utilization and growth of the company.
Incentive 3: DR is a "door opener" with clients/prospects
DR is an innovative product about which many employers have never heard. Making DR available, then, quickly separates you from your competition. By implementing a client's DR plan, you've garnered credibility and won the client's trust; a satisfied client may mean an opportunity for you to bid on other lines of the company's benefits business.
Receive Leads and materials—at no charge!
Annually, the ADA generates thousands of leads from its print advertising and direct-mail campaign. The ADA and numerous state dental societies also regularly receive information from dentists about patients who are looking to change their dental plan and have requested information about DR. Historically, the ADA and dental society staff have followed up on these leads. Today, however, many state dental societies are passing these leads on to brokers like you, to ensure that their questions are answered and that their needs are met.
The ADA produces many DR materials, including brochures and case studies, to help employers understand the benefits of DR. These materials are available at no charge upon signing a simple licensing agreement with the ADA. The ADA also maintains a list of TPAs who handle DR. Please contact the Dental Benefit Information Service (DBIS) to request this type of information.