SAN FRANCISCO--The holding company system that includes Delta Dental of California, Pennsylvania and affiliates in 15 states and the District of Columbia, and Delta Dental of New York have announced a strong performance during fiscal year 2005.
The enterprise, which operates under a single, shared management structure led by President and CEO Gary D. Radine, will add more than 1.2 million enrollees this year based on 2005 sales, while retaining 98 percent of its prior enrollment. Consolidated gross revenues for the enterprise are estimated at $4.7 billion.
Total enrollment for the combined enterprise is projected to exceed 21 million in 2006 once all new business sold becomes effective.
Delta Dental of California and its two affiliates, PMI Dental Health Plan and Delta Dental Insurance Company, will add about 925,000 new enrollees in 2006. Delta Dental of Pennsylvania and its affiliates will add another 333,000 new enrollees over the course of the year.
Among several marquee commercial accounts added last year were the New York Times Company, Southwest Airlines, Dr Pepper/Seven Up Bottling Group, Mervyn's and Gymboree. In addition, Delta gained significant enrollment in several large national, group voluntary and state government programs:
1) The TRICARE Retirement Dental Program, administered for the Department of Defense, added 95,200 enrollees. By year's end there were 912,000 uniformed service and family members in the program.
2) The Delta Dental/AARP dental plan, underwritten by Delta Dental Insurance Company, added 138,000 members and dependents.
3) Delta Dental's State Government Programs division was selected to launch a children's dental program for the state of Texas, also underwritten by Delta Dental Insurance Company. The program will cover an estimated 323,000 children from low-income families.
AM Best recently re-affirmed its "A-" (excellent) financial strength rating for the overall holding company system, an "A-" rating for Delta California, PMI and Delta Dental Insurance Company and a "B+" (very good) for Delta Pennsylvania and its affiliates.
"The important thing is that we grew in every one of our regions with a product line that retains good competitive strength in each of our target markets," said Radine. "Our challenge going forward is to not lose momentum, and not lose sight of the difficult position many of our customers face with their increasingly limited benefit dollars, given the continuing escalation in health care costs."
Dental benefit premiums, however, are expected to remain relatively steady at an average rate of increase of around 5.8 percent in 2006, according to a joint Delta Dental/National Association of Dental Plans survey. That trend has held steady over the last several years.
