About Dental Loss Ratio Legislation
Want more from your dental insurance? Most procedures beyond annual cleanings are likely to come with a high cost to you, even after your dental insurance pays for services. Annual maximums and other contractual limitations, which dictate what a dental plan will pay, have remained stagnant for decades. Meanwhile, inflation and other costs associated with dental care have increased. The return value of paying for dental insurance continues to decline. A dental loss ratio will help direct more of your premium dollars to dental care that is needed and deserved.
What is a dental loss ratio?
A dental loss ratio is the percent of revenue a dental plan earns divided by the amount of money spent on direct patient care. Patient dollars should go to patient care. Minnesota’s dental loss ratio legislation sets the required ratio at 85%. Medical plans have similar minimum ratio requirements, dental plans do not.
In addition to setting a dental loss ratio, Minnesota’s dental loss ratio legislation requires dental plans to issue a rebate to enrollees if the plan fails to meet the ratio. It also requires dental plans to be more transparent in their operations and finances by annually reporting their ratios publicly.
What are the Benefits?
Minnesotans deserve value and care for their money. A dental loss ratio ensures that employers and patients are getting the most from their premiums.
Better value
Consumers and employers who pay premiums are guaranteed better value for their money. Dental plans cannot raise premiums without spending more on patient care.
Increased Transparency
Consumers and employers can see how their premium dollars are spent and can make informed decisions when selecting their benefit plans.
Access to Care
Better dental benefit coverage brings a lower risk of delaying care. If your dental benefits cover more, patients are more likely to seek and receive care.