03:58 PM -- Presentation by Delta Dental of Colorado Regarding Direct Dental Reimbursement Kate Paul, Delta Dental of Colorado, testified that Delta Dental is a nonprofit organization and 90 percent of dentists in Colorado are in the Delta Dental network. She stated that the cost savings associated with direct reimbursement occur because individuals are utilizing their benefits less, and may not be receiving appropriate preventative dental treatment. She stated that some employers have dropped direct reimbursement in favor of dental insurance.
04:05 PM Cathye Smithwick, Mercer Human Resource Consulting, defined direct reimbursement as a method of providing benefits under which the patient receives care, pays the dentist, and is later reimbursed by their employer up to some annual dollar limit. She stated that there is not a lot of pricing information available to the consumer regarding medical and dental benefits. She stated that dental plan designs have been designed over time by dentists, and that good dental plans include varying levels of patient cost sharing in order to promote wise consumer use of dental benefits. Direct reimbursement is a plan advocated by organized dentistry, and that there is really no means of evaluating its performance as an alternative to traditional designs. She stated that there are currently no barriers for employers to offer direct reimbursement plans, but discussed some negatives associated with direct reimbursement including: the lack of employee cost share; lack of plan design; lack of fee management; and lack of essential protections for employees and employers. 04:28 PM Miller Hudson, Colorado Association of Public Employees, stated that more Colorado public employees participate in dental plans than in health insurance plans. He stated that most state employees want an insurance program in which all members of a family can receive a preventive dental benefit. Mr. Hudson responded to questions form the committee regarding the benefit levels in direct reimbursement versus dental insurance. 04:36 PM Dr. Terry Batliner, Delta Dental, testified that the Delta Dental product provides a number of consumer protections and that Delta Dental can identify dentists that are practicing without a license or engaging in unauthorized billing processes. He stated that the only way that money is saved through direct reimbursement is through decreased utilization of dental benefits. The representatives from Delta Dental distributed two handouts to the committee (Attachments J and K). 04:39 PM The committee adjourned.