Overview of Benefit Issues

PRACTICE OF DENTISTRY

(BUSINESS ASPECT)

VS.

PRACTICING DENTISTRY

(PROFESSIONAL ASPECT)

Changes in the Delivery of Dental Benefits

FEE-FOR-SERVICE

THE DENTIST RECEIVES A FEE FOR EACH SERVICE

THE DENTIST IS NOT AT RISK

MANAGED DENTAL CARE:

… attempts to manage the cost and quality of dental care through the use of various delivery systems and reimbursement models

PREFERRED PROVIDER ORGANIZATION
“PPO”

A dental plan with a network of dentists
who have agreed to accept a specific
 fees for covered services
Reimbursement is on a fee-for -service
basis
THE DENTIST IS NOT AT RISK

DENTAL HMO
“CAPITATION/PREPAID”
A dental plan that reimburses the
dentists on a fixed “per capita” basis, usually monthly for each individual
or family
Payment is made irrespective of the
number of services rendered or beneficiaries seen
THE DENTIST IS AT RISK

The Dental Marketplace -
Delivery Models

Trends in Dental Care

Dental Vendors

Dental Vendors - Market Share
Participation in dental plans (employees and dependents)
•Total dental benefits market - 2000

Dental Care in Traditional and Managed Plans

Cost
¹
“Quality”
(or appropriate care)

Dental Care in Traditional & Managed
Plans

•No valid or reliable studies currently exist
which indicate that there is a “variance” in
quality between traditional and managed care
dental programs
•The limited studies available indicate there is
no distinction between the care delivered under
dental benefit programs with differing financial incentives for dentists
(E.G., Massachusetts Employees Study, Washington Delta Study)

Dental Marketplace Data

Dental Benefits Enrollment by Employer Type
- Full-Time Employees*

Dentist Income

Myth #1

Changes in the Dental Marketplace
1998 Consumer Price Index - Increases in selected Items

The Dental Marketplace
- Financial Overview

Changes in the Dental Marketplace
Projected Spending on Dental Services 1999 - 2008
($ in billions)

Dental Providers

Dental Providers

Effect of Managed Care on Dentists’ Net Income
(responses among managed care participant dentists)

The Changing Face of the Marketplace: is Managed Care Right for You?

RISK!

RISK

CHANGING DENTISTS’ MIND-SETS

THEY ARE NOT ALL ALIKE
Robert Mehlman D.D.S.

KEY “REAL WORLD” FACTORS IN CHOOSING A MANAGED CARE PROGRAM

KEY “REAL WORLD” FACTORS IN CHOOSING A MANAGED CARE PROGRAM