Annual Report. Delta Dental of Colorado S. Ulster Street, Suite 800 Denver, Colorado 80237

Transcription

1 20 Annual Report Delta Dental of Colorado 4582 S. Ulster Street, Suite 800 Denver, Colorado

2 Dental insurance should be simple. Throughout 2011, Delta Dental of Colorado worked methodically toward a common goal: reduce the unnecessary complexities of our business in a push toward lower costs and better service. Our focus on process innovation revealed cost-effective ways to streamline our business. We carefully implemented significant organizational changes in 2011, while maintaining exceptionally high service levels for our members, employers and dentist partners. Contents Executive Summary... 2 Products... 3 Dual Network Advantage... 4 No Kidding!... 5 Delta Dental of Colorado Fund... 6 Delta Dental of Colorado Foundation... 7 Delta Dental in the Community... 8 Delta Dental of Colorado Board of Trustees... 9 Delta Dental of Colorado Senior Leadership Measures of Success Financials... 12

3 For more than 50 years, Delta Dental has been the name Colorado knows and trusts. We celebrated a milestone in From Telluride to Tabernash, Littleton to Lamar and many other locations in between Delta Dental of Colorado is proud to cover more than one million members! Heath care reform is rapidly approaching, which places us in a prime position to help consumers navigate this uncharted territory. As Colorado s trusted dental leader, we can help alleviate consumer concerns through education and awareness. It s important for consumers to know that we re different. We re not just another insurance company; we re a non-profit organization dedicated to Colorado. We focus on the important issues like giving back to our community and doing everything we can to achieve our mission of improving the oral health of Colorado s people. In 2011, we gave 55% of our net gain to support oral health education and non-profit programs in our state. We believe it s possible to reduce the impact of dental disease. We re confident that if we lead the way, the citizens of our great state will follow. And when they do, Delta Dental of Colorado will be there, filling the familiar role as Colorado s trusted dental leader. Delta Dental of Colorado will be there, filling the role of Colorado s trusted dental expert. Cynthia A. Evans Chair, Delta Dental of Colorado Board of Trustees Kathryn A. Paul President & CEO Delta Dental of Colorado Delta Dental of Colorado 2011 Annual Report - page 2

4 Products Designed to Meet Colorado s Needs A Leader Colorado Can Trust Delta Dental of Colorado s half a century of experience has made us the state s oral health experts. We focus on one thing dental and we do it right. Dental benefits aren t a sideline business, they re our only business. Savings, selection, small budget? Everyone has a unique set of concerns. In 2011 we offered a wide variety of products and services, with something to fit everyone s needs. Delta Dental PPO SM plus Premier Delta Dental s PPO plans are a popular choice because they are designed to save money without sacrificing selection. Nearly 1,700 Colorado dentists participate in our PPO network. Delta Dental Premier Groups that choose a Delta Dental Premier plan get access to nearly 9 out of 10 (2,925) dentists in Colorado and almost 137,000 nationwide. Premier plans are a great option for employers concerned with providing choice. Value-Added Plan Features & Options We also offer features that add value to stand-alone dental plans. Including features like Prevention First and Evidence Based Dentistry can enhance our dental coverage options. Voluntary dental plans allow employers to offer a full dental benefits package even when dental benefits are not in the budget. Voluntary plans have become an excellent way to maintain a rich benefits offering, while sharing the cost with employees. Delta Dental Patient Direct is a dental discount program that can be offered in place of traditional insurance. It s an affordable, innovative option that many of our clients appreciate. Delta Dental of Colorado 2011 Annual Report - page 3

5 Dual Network Advantage: Choice and Affordability Delta Dental s dual network Premier and PPO accounts for about 88% of the providers in Colorado. Network providers offer members important protections that make their dental care more affordable. For example: Delta Dental providers agree to follow policies and procedures as outlined in their provider agreement, which protect the patient while ensuring the patient gets the care they need. Participating dentists agree not to charge more than the maximum allowed for each procedure this applies to all procedures, even those not covered by a patient s dental plan. Network providers may not bill members for the balance between their contracted fee and their customary fee. The claims and out-of-pocket savings that result from our dual network is what makes Delta Dental the most effective and valuable dental plan in today s market. And it s why our retention rate with employers was more than 97% in Colorado provider network participation by the numbers Delta Dental s Dual Network Advantage: 88% 55% of dentists in Colorado participate in the Delta Dental PPO network. When our Premier and PPO networks are combined, nearly 9 out of 10 dentists participate with Delta Dental of Colorado! 33% of dentists in Colorado participate in the Delta Dental Premier network. 12% of dentists in Colorado do not participate with Delta Dental. Delta Dental of Colorado 2011 Annual Report - page 4

6 Cavities are nearly 100% preventable. No Kidding! No Kidding spreads the word; continues in 2012 Delta Dental of Colorado s No Kidding! public service campaign has been an effective way to communicate the importance of good oral health in Colorado. The campaign continued through all of We received so much positive feedback that we decided to continue it another year. The message we shared really resonated with Colorado residents, said Barbara Springer, Executive Director, Delta Dental of Colorado Foundation. Of course our providers know about the prevalence of children s dental disease, but a lot of parents don t. In 2011, we found success communicating this important message through social media -- mommy blogs and parent-focused websites, Springer elaborated. Delta Dental used a variety of local media and strategic sponsorships to further the campaign in For a sneak-peak of the 2012 No Kidding! campaign, check out the last page of this report. We received so much positive feedback...the message we shared really resonated with the people of Colorado. --Barbara Springer Executive Director, Delta Dental of Colorado Foundation 2011 No Kidding! Print Ads Introduce your child to the dentist. Before they can even say Hello. When it comes to keeping your child s smile healthy, be sure to cover all your bases. Here s a surprising fact: children should visit the dentist by age one. In fact, before the first baby teeth even erupt, parents can take measures to help protect their little ones from the effects of dental disease. Childhood dental disease ranks as the most common chronic condition among children even though cavities are nearly ı00% preventable. At Delta Dental, we re working to eliminate childhood dental disease by providing funding and support to numerous community programs that improve dental health education and promote good dental health. Discover the small changes in dental habits including visiting the dentist that can have big effects on a child s dental health. Visit to learn more. At Delta Dental, we re making a play to eliminate childhood dental disease by providing funding and support to numerous community programs. You can help prevent childhood cavities at home by following a few tips: Clean your baby s gums after meals with a damp washcloth or soft infant toothbrush. Avoid sharing items such as spoons that can transfer cavity-causing bacteria from your mouth to your baby s mouth. If your child needs a bottle at bedtime, only fill it with water. Make sure your child visits the dentist by age one. Scan the code or visit MonthlyMouthfulCO.com to learn more about how you can protect your child s winning smile. Cavities are nearly ı00% preventable. Cavities are nearly ı00% preventable. Delta Dental of Colorado 2011 Annual Report - page 5

7 The Delta Dental of Colorado Fund Because a healthy smile can change a life. Two years of free dental insurance for low-income Coloradans Late in 2010, the Delta Dental of Colorado Board of Trustees approved formation of the Delta Dental of Colorado Fund (DDCO Fund). The DDCO Fund provides two years of free dental insurance to incomequalified individuals across Colorado. Since its official launch in October 2010, we ve managed to enroll nearly 6,000 lowincome Coloradans. As of January 31, 2012, the DDCO Fund was closed to new enrollment. In just four months, the DDCO Fund enrolled nearly 6,000 Coloradans and reached capacity. Delta Dental of Colorado Fund Active enrollment through January 31, ,000 4,500 4,000 3,500 3,000 2,500 4,551 Adults 2,000 1,500 1, Children 543 Seniors Delta Dental of Colorado 2011 Annual Report - page 6

8 The Delta Dental of Colorado Foundation The Delta Dental of Colorado (DDCO) Foundation is a charitable foundation fully supported by Delta Dental of Colorado. Its mission is to eradicate cavities in Colorado s children. Unfortunately, many of Colorado s children suffer from this silent epidemic. Over 57% of third grade students in Colorado have tooth decay!. That s a problem we just can t ignore. While these statistics are grim, the DDCO Foundation is confident in its ability to make a difference. Especially since cavities are nearly 100% preventable. Over 57% of third grade students in Colorado have tooth decay. Over the last ten years, the DDCO Foundation has supported Colorado with more than $10 million in grants and services -- more oral health funding than any other organization in the state. As a result, more than 65,000 people in Colorado have benefitted from the work of the DDCO Foundation. Putting our mission into action: 13,000 8,700 Low-income kids got the sealants they needed Pregnant women and their children got greatly needed dental care 800 1,500 Health care providers trained in Cavity Free at Three CU medical students received interprofessional training in oral health A Cavity Free at Three patient learns about good oral health. Delta Dental of Colorado s Senior Program Officer, Colleen Lampron, joined Delta Dental in August of In 2011, Delta Dental of Colorado created a Senior Program Officer position, which is directly responsible for oversight of the Delta Dental of Colorado Fund, as well as projects funded by the Delta Dental of Colorado Foundation. Delta Dental of Colorado 2011 Annual Report - page 7

9 Delta Dental Gives Back to the Community Some of the give Organizations Alzheimer s Association of Denver Delta Dental of Colorado celebrates one million members; gives $120,000 in support of community organizations. Delta Dental of Colorado celebrated a milestone in 2011 we reached one million members! To mark this significant achievement, Delta Dental of Colorado contributed nearly $120,000 to local charities through its give program. The program, originally implemented in 2009 and rolled out again for 2011, allotted each employee $1,000 to donate to the Colorado charity of his or her choice. As in 2009, 2011 s give campaign was well-received by employees and the local community. American Cancer Society American Heart Association American Transplant Association Colorado Horse Rescue Project Angel Heart Susan G Komen for the Cure Foundation Rocky Mountain MS Center Food Bank of the Rockies I m very impressed with Delta Dental s giving spirit. The give program proved our opinions as employees do matter to the overall organization. I feel proud to be a part of a program like this, said Communications Manager, Lisa Konen. Helping Art Liberate Orphans (HALO) Make a Wish Foundation The people of Delta Dental are incredibly generous, so I know this is meaningful for them, said Kate Paul, A program like give is just one way we fulfill our non-profit mission of giving back to the communities we serve, she concluded. give allowed Delta Dental employees to make a donation to charities that are personally significant Delta Dental of Colorado 2011 Annual Report - page 8

10 Delta Dental of Colorado s Board of Trustees Delta Dental of Colorado Board of Trustees Standing, left to right: Jon Anderson, DDS Douglas Berkey, DMD, MPH, MS Board Vice Chair Mary Noonan Marilyn Taylor Gail Schoettler, Ph.D Thomas Swain, DDS Seated, left to right: Donald Safer, DDS, MS Denise Kassebaum, DDS, MS Kathryn A. Paul, Delta Dental of Colorado President & CEO Cynthia Evans, Board Chair Victor Lazzaro, Jr. John Hopkins Not pictured: LaRae Orullian, Board Secretary & Treasurer; Cheryl Wenzinger, CPA Delta Dental of Colorado 2011 Annual Report - page 9

11 Delta Dental of Colorado s Senior Leadership Team Delta Dental of Colorado Senior Leadership Team Left to right: Linda Arneson Chief Operating Officer Jean Lawhead Vice President, Sales & Marketing David Beal Chief Financial Officer Kathryn A. Paul President & CEO Barbara B. Springer, J.D. General Counsel & Vice President, Administration Delta Dental of Colorado s mission: To improve the oral health of the communities we serve. Delta Dental of Colorado 2011 Annual Report - page 10

12 2011 Measures of Success 2011 by the numbers Delta Dental Premier providers: 2,925 Delta Dental PPO providers: Overall subscriber satisfaction: Groups retained in 2011: 1,698 95% 97% Cost savings to customers and subscribers: $124 Million 2011 contribution to the Delta Dental of Colorado Foundation: $3,631,000 Number of enrollees served: Number of claims paid: Number of claims processed: Amount paid out in claims: Premium revenue: 1 Million 1.7 Million 1.8 Million $232 Million $266 Million Delta Dental of Colorado 2011 Annual Report - page 11

13 2011 Financial Results Consolidated Balance Sheet Years Ended December 31 (in thousands) ASSETS Cash & investments $85,580 $76,223 Amounts receivable 15,239 12,538 Property & equipment, net and other assets 3,927 4,292 TOTAL ASSETS $104,746 $93,053 LIABILITIES Claim & claim adjustment expenses $11,921 $11,249 Unearned premiums 1,808 1,781 Accounts payable & accrued liabilities 9,974 4,737 TOTAL LIABILITIES $23,703 $17,767 RESERVES Foundation reserves, restricted $2,000 $2,000 Foundation reserves, unrestricted 11,985 11,286 Company reserves, restricted 2,510 3,000 Company reserves, unrestricted 64,548 59,000 TOTAL RESERVES $81,043 $75,286 TOTAL LIABILITIES & RESERVES $104,746 $93,053 (Complete audited financial statements are available for inspection at our corporate offices upon request.) Consolidated Statement of Operations & Reserves Years Ended December 31 (in thousands) Premium revenues $265,545 $247,275 Net investment income 4,328 2,452 TOTAL REVENUE $269,873 $249,727 Benefits for services to members and operating expenses (including 263, ,393 community benefit expenditures) NET GAIN $6,298 $5,334 Reserves at beginning of year 75,286 66,109 Net change in unrealized gain on investments (451) 3,785 Net change in unrecognized pension cost (90) 58 RESERVES AT END OF YEAR $81,043 $75,286 Delta Dental of Colorado 2011 Annual Report - page 12

14 Delta Dental of Colorado s Mission Statement Our Mission: To improve the oral health of the communities we serve. Delta Dental of Colorado 2011 Annual Report - page 13

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16 Improving Colorado s oral health one smile at a time. Cavities will still be nearly 100% preventable in 2012, which is why we re continuing this important public service message for another year. Here are some examples of the 2012 advertisement concepts No Kidding! You can t always prevent kids from getting into mischief. You can t always prevent kids from getting bumps and bruises. But you can prevent them from getting cavities. You can t always prevent kids from getting sick. But you can prevent them from getting cavities. Getting into mischief is just part of being a kid. Getting cavities, however, doesn t have to be. As a parent, you have it within your power to keep your family free of cavities. That s because cavities are nearly 100% preventable. At Delta Dental, we re not kidding around when it comes to preventing dental disease. Visit NoKiddingColorado.com for age-specific dental health information to help keep your kids cavity-free. Cavities are nearly 100% preventable. Getting boo-boos is just part of being a kid. Getting cavities, however, doesn t have to be. As a parent, you have it within your power to keep your family free of cavities. That s because cavities are nearly 100% preventable. At Delta Dental, we re not kidding around when it comes to preventing dental disease. Visit NoKiddingColorado.com for age-specific dental health information to help keep your kids cavity-free. Cavities are nearly ı00% preventable. But you can prevent them from getting cavities. Getting a cold on occasion is just part of being a kid. Getting cavities, however, doesn t have to be. In fact, cavities are nearly ı00% preventable and good oral health habits can also positively impact overall health. At Delta Dental, we re not kidding around when it comes to preventing dental disease. Visit NoKiddingColorado.com for age-specific dental health information to help keep your kids cavity-free. Cavities are nearly ı00% preventable.