New Dental PPA Provides High Quality Care and Savings of 10-20% Over the Cost of Traditional PPOs

LODI, CA--(Marketwired - Jun 8, 2015) - In recent years, the dental insurance industry has been strained by rising healthcare expenditures, economic distress and weakening employer commitment to providing coverage. During that period, the constant increase in healthcare expenditures (i.e. medical-cost inflation) has driven premium growth despite fewer policy enrollments. Further, the cost increases and a poor economic climate continue to put pressure on operators' profit margins.

These various economic considerations have resulted in the emergence of Preferred Provider Organizations (PPOs) obtaining increased market share. The dental insurance industry operates with a low level of market share concentration. The top four companies accounted for an estimated 35% of total industry revenue in 2014. Even more disturbing is that these figures potentially understate the industry's concentration because the top industry organizations have numerous affiliates that use their brand names. For example, one insurance company and its independent affiliates, are expected to account for 28.5% of total industry premiums in 2014. Industry concentration has further increased in the past five-years as downstream clients have viewed dental insurance as an extra cost and have cut dental coverage during the recession to save money.

With that in mind, there is a significant need for decreased costs for Dental Insurance while maintaining quality care -- especially for employers wishing to provide an insurance benefit for their employees. The Dental PPA addresses that need!

Introducing The Dental PPA

In response to these various needs, concerns and challenges, The Dental PPA was formed. The organization was formed by a group of private practice dentists who joined together to provide the best care for the lowest possible cost for employers and their employees. 

The Dental PPA provides a way for employers to be self-insured at a competitive cost (typically 10%-20% less expensive than traditional PPO programs). They have created a network of over 1,500 local dentists who accept the PPA insurance from their patients and participating employers. Both a premium savings and the freedom of choice are provided to the end user.