Dental Plans Become More Transparent and Effective

It is great news that dental plans will demonstrate how much money is spent on providing direct dental services rather than to show information on costs and profits. The legislation is signed and all the hidden information will be accessible to analyze and the efficacy of these expenses will be assessed.

According to Assembly Bill 1962, the existing dental plans had to spend about 80% of the profits in the form of consumer premiums onto direct dental services and on reduction of premiums. If we consider health insurance plans, then we can state they are meeting the same requirements already due to the Affordable Care Act but at present, there are no definite requirements in relations to dental plans.

The opposition was met from the side of the California Chamber of Commerce and dental plans and as a result, the only achievement which is now reached is disclosure of the information on the financial expenses.

The California Dental Association contributed a lot of money to create this Bill and the main reason for it was to provide the proper protection of consumers as the information confirmed that only 38 per cent of dental premiums is spent on improving the dental care services. One of the greatest benefits of this Bill is that the needed transparency will be provided to employers and patients who need to know how much money is spent on dental care.

At the same time, employers and individuals received about $12 million in refunds as the health plans did not correspond to the rule of 80 per cent. This fact shows that dental plans are a secret territory and the solution will be found soon. The complete information and reports on the expenses of dental plans will be provided soon and the proper measures will be taken.

Photo by Godbold [Public domain], undefined