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ADA member insurance plan discounts increase

The ADA Council on Members Insurance and Retirement Programs approved across-the-board increases in discounts for the ADA member insurance plan at its Aug. 21 meeting. As a result, the competitive advantages of the ADA's group life, disability and supplemental medical plans will be even greater.

"Because the ADA sponsors the ADA Insurance Plans on a not-for-profit basis, any excess surplus is returned to participants in the form of a rate discount," explained Dr. Larry Browder, incoming chair of the council. "While participants in the ADA insurance plans are accustomed to receiving premium credits, what is unusual is that the amount of their credits will be increasing at a time when some other insurers are actually raising prices. This year we were able to increase the premium credit for all five plans."

According to a June 9 Wall Street Journal article, "Insurers Raise the Premiums on Term Life," premium increases averaging 5-15 percent have been noted nationally since January.

The article attributes the increase to higher capital and reinsurance costs due to tighter credit markets and lower returns on investments.

"The fact that we're seeing such positive financial results in a recessionary economy and are able to pass them along to the more than 100,000 participants covered under the ADA Insurance Plans is great news," said Dr. Browder. "The economies of group administration, which include not paying agents commissions, helps keep premium costs down."

Additionally, Dr. Browder noted that dentists, dental students and their families are likely to be in better than average health, which is reflected in the ADA insurance plans claims experience.

"ADA Insurance Plans have long held adequate reserves and additional surpluses generate investment income that contributes to favorable loss ratios," explained Jim Biesterfelt, vice president of group special accounts for Great-West. "We've achieved remarkable savings in administrative expenses as a result of state-of-the-art data processing systems and strong cost control measures."

For more information about the ADA Insurance Plans visit www.insurance.ada.org or call the ADA toll-free, Ext. 2885 or call ADA Insurance Plans at 1-866-607-5330.