ADA members who participate in the ADA’s group life, disability, or medical supplement insurance plans will benefit from improved discounts when they receive their next premium bills. The improved discounts are a result of of recent premium credit increases approved by the Council on Members Insurance and Retirement Programs (CMIRP) at its August 20 meeting.
Premium credits are a unique feature of the ADA Insurance Plans that allows plan participants to share in the financial fortunes of the program and can significantly discount premiums.
The ADA Insurance Plans are established under a group contract that allows for available surplus to be returned to participants in the form of a premium credit when the plans have favorable financial and claims experience. The credit, in turn, reduces net premiums. (Premium credits can also be thought of as premium rate discounts.) This year, claims experience under each of the plans has been favorable, which allowed the ADA to increase premium credits effective with the next billing cycle. (See chart below.)
Although premium credits are re-evaluated annually and not guaranteed, the ADA has been able to pass along premium credits to members for many years. In a recessionary economy, the ability to achieve such positive financial results—and then pass them along to the more than 100,000 participants covered under the ADA Insurance Plans—is noteworthy.
Jim Biesterfelt, vice President of Group Special Accounts at Great-West Life and Annuity Insurance Company, which underwrites and administers the ADA Insurance Plans, noted: “The ADA remains committed to helping dentists get the best value for their insurance dollar. The plans are managed in a fiscally conservative manner with long-term stability in mind and reserves are held on all plans in accordance with prudent actuarial standards. Under the premium credit process, once those plan obligations and operating costs are funded, if excess surplus exists it can be returned to participants in the form of a discount for their upcoming premium cycle – allowing participants to share quickly in the favorable financial results.”
The ADA Insurance Plans include term life, universal life, disability income protection, business overhead expense, and medical supplement insurance. The plans are underwritten and administered by Great-West Life & Annuity Insurance Company through a partnership with the ADA that dates back more than 75 years.
For more information about ADA Insurance Plans, visit www.insurance.ada.org, e-mail [email protected], or call 1-866-607-5330.
Premium Credits Increase for ADA Insurance Plans Chart
| Product | Current Credit | New Credit | Effective Date |
| MedCASH | 35% | 40% | Oct. 2010 |
| Income Protection | 38% | 42% | Nov. 2010 |
| Term Life | 50% | 55% | Jan. 2011 |
| Office Overhead | 56% | 35% | Feb.2011 |
