Board Sets 2017 NADP Dues

June 2016

Board Sets 2017 NADP Dues

Over this last decade, NADP has grown from representing 70% of the dental benefits market to more than 90% of total US lives covered by dental benefits. Likewise, membership dues for dental plan members have increased almost annually during this timeframe to address the trend of plan mergers and acquisitions and escalating demands of increased state and federal legislative and regulatory activity encompassing dental. In response to these trends, the NADP Board of Directors tasked the Budget Committee and Membership WorkGroup to evaluate possible new dues structure. As part of this process, NADP is researching two possible alternatives to its future membership dues structure through a Membership Dues questionnaire, distributed earlier this month to the primary contacts of dental plan members.

While NADP evaluates feedback from the Membership Dues Questionnaire, the association adjusted the current dental plan dues structure for 2017 by increasing dues by 3%. This level of dues change was needed, in addition to increases in the Associate and Supporting Organization dues categories, to assure NADP’s ability to support the superior experience level of current staff and commitments to represent the dental benefits industry in all forums setting standards for our industry.

Following is information about 2017 dues for the following categories:

Dental Plan Dues

The 2017 dues structure is built on our historic weighting of enrollment as follows by type of dental benefits product as follows:

• Fully Insured Dental Indemnity & DPPO (including EPO) = 1.0
• DHMO (Both Fully Insured and Self-Funded) = 0.7
• ASO (DPPO, Indemnity & other non DHMO dental benefit arrangements) = 0.3
• Discount Dental Plans (sometimes called “Savings” plans) = 0.3
• Dental Medicaid & Medicare (Both Fully Insured and Government Funded) = 0.3

Four categories of dues are maintained, i.e. Base, Mid-level, Cap and MegaCap. The rates and estimated weighted enrollment ranges for these categories for 2017 dues are:

BASE                                     

$4,456 minimum under 96K weighted members

MIDLEVEL                           

$0.0474 per enrollee up to 1.153M weighted enrollees or regular cap of $54,631

CAP                                       

$54,631 from 1.153M weighted enrollees to 5.727M weighted enrollees

MEGACAP                          

.00954 per weighted enrollee starting at 5.727M weighted enrollees until MegaCap of $68,900 (over 7.2M weighted enrollees)

1. For Base members, this rate represents a $130 average increase over 2016 dues.
2. For MidLevel members, the per-enrollee rate increases from 0.046 to 0.0474
3. For CAP members, this rate is a $1,591 increase over 2016
4. For MegCap members, this represents an increase of .009 to .00954 per enrollee until MegaCap of $68,900 (over 7.2M weighted enrollees). The top end of the MegaCap increased from $65,000 – $68,900.

In addition, NADP will continue to offer a 2% dues discount on early renewals received by December 31, 2016.

Associate Dues

In reviewing the structure for dental plans, the Budget Committee and Membership WorkGroup also noted the Associate membership dues categories are outdated, as all but a few of Associate members are currently in the top dues category under the existing structure, which was created in 2001. Thus, the Board approved the following as the 2017 dues structure for Associate Members:

New Associate Member Value Proposition

The increase for most Associate Members is 13%, and as the first increase in 16 years is less than 1% a year for this dues category. While lower than general inflation for this period, the Board wanted to assure a strong value proposition for Associate members who share several common goals and challenges with our dental plan members. To this end, the NADP Board approved the creation of the

DSO Advisory Council.

The DSO Advisory Council will consist of one or more representatives of each Associate Member and one or more representatives of any DSO affiliates of dental plan members. The DSO Advisory Council would fall under the same structural area of NADP’s volunteer groups as the FAIR Health Workgroup. NADP will provide further details about the Council to Associate and qualifying dental plan members.

Supporting Organization Dues

For 2017 the Board of Directors approved a $250 increase in Supporting Organization dues, the first increase in 16 years. This brings annual dues to $1,750. In addition, NADP will continue to offer the graduated, longevity dues discount on early renewals received by December 31, 2016.

Supporting Organization Value Proposition

Over the past 16 years, the size of NADP’s market share has increased by more than 20%, providing Supporting Organization members with a rich, target audience in the dental plan industry.

Should you have any questions regarding NADP membership dues, contact Director of Membership Rene Chapin.