Market Expansion Altus Dental Focuses on Slow, Steady Growth in Massachusetts
Joseph Perroni says most people know how important it is to have dental insurance for themselves and their families.
“It’s one of the most sought-after benefits beyond medical care, so employers like to offer it,” noted the vice president of sales and product development for Altus Dental Insurance Co. Inc., adding that more than 60{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} of Massachusetts residents have some type of dental coverage.
However, choosing an insurer involves weighing many factors that include the cost of annual or monthly premiums, the services that are covered, whether dentists in a specific geographic area accept the insurance, and the cost of co-payments for common procedures.
Although Altus is one of the newer dental insurance carriers in the state, Perroni said it has been able to exceed expectations in all of these areas.
Its PPO network is one of the largest in the region and continues to grow; the company has 1,400 clients in Massachusetts and nearly 160,000 members who receive care at 6,900 locations across the state. Roughly 30,000 members reside in Hampden, Hampshire, Franklin, and Berkshire counties, where they are able to access services from general and pediatric dentists, general and oral surgeons, endodontists, and practitioners from every other dental discipline.
“Beyond having the largest PPO network, we offer deeper discounts across the board than any other dental insurer,” Perroni told HCN. “Our members save more money out of pocket on co-insurance than they would with any other carrier. It’s the thing that makes us so attractive, along with the fact that we offer flexible plans. Our clients decide how they want to build their product.”
Altus Dental is headquartered in Rhode Island, and its popularity has grown steadily since the brand was introduced in Massachusetts 14 years ago.
“We compete with the big commercial carriers, but didn’t enter the Massachusetts marketplace until 2001, which was not a great time to launch a business,” Perroni recalled. But the company formulated a strategic plan that involved slow growth, while it took the time needed to examine needs in the marketplace, and it proved to be highly successful.
“We didn’t just look at typical corporate accounts when we started, and we have established a great reputation for serving the underserved market,” he said.
For example, in 2005 Altus created a partnership with all AAA franchises in the Commonwealth, including AAA Pioneer Valley.
“They have 2.2 million cardholders in Massachusetts alone; we have an exclusive partnership with them, and no other dental insurance carrier has access to such a wide reach,” Perroni said, explaining that a large number of retirees who are AAA members have enrolled in individual dental plans Altus offers through the club, which have been modified several times based on input from members.
It’s an important segment of the market since the majority of these subscribers had dental insurance while they were working and lost it when their jobs ended. And since Altus knows cost is a critical factor in whether people sign up for dental insurance or go without it, it created algorithms that take age into account, yet make it possible to offer policies to people who might not otherwise be able to afford dental insurance.
“Our AAA program hasn’t had more than a single-digit rate adjustment in a very long time,” Perroni told HCN. “We’re very aggressive about helping retirees continue with dental coverage, and we have a 95{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} retention rate; people choose us, then stay with us.”
Indeed, customers report a high degree of satisfaction. A survey conducted in 2014 showed that 95{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} of the members’ dentists participated in the plan, 92{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} of members rated their own dental health as good or very good, and 90{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} said they would recommend Altus to a friend or family member.
Perroni says these results speak to the company’s decision to grow steadily but slowly to ensure it provides the best possible solutions for clients.
Advanced Website
Perroni said every Altus plan can be custom-tailored to meet the needs of an employer, and can include preventive and diagnostic services, minor and major restorative work, periodontics, surgery, and orthodontics.
The company prides itself on its website, which allows people to compare the plans it offers, choose a plan that suits their needs, or customize a plan.
“People can sign up for coverage or renew their plan on the website. They can also search for a dentist by specialty or geographic location through our electronic self-service department, access an explanation of their benefits online, and opt to go paperless,” Perroni explained. “Subscribers can also look at their benefits, which is important because sometimes they don’t know when they are due for their next cleaning or how much they have spent in a year to date. Our website is robust, and we have been able to leverage a lot of technical resources, which is one of the things that differentiates us from other dental-insurance providers.”
The site also contains a wealth of information and articles, including one on the mind/body connection that cites medical evidence which shows an unhealthy, bacteria-filled mouth can lead to heart disease, diabetes, blood infections, and even pre-term, low-birth-weight babies. Meanwhile, infected gums and untreated periodontal disease can cause bacteria to enter the bloodstream, travel to major organs, and set off serious medical issues.
There is a section for children packed with fun-filled activities, including a toothbrushing chart, a connect-the-dots tooth, a tooth maze, word games, a quiz that allows youngsters to circle teeth that are ‘happy’ or ‘sad’ depending on the food pictured next to them, and a recommended reading list of books.
And educational material is also provided for adults. There are descriptions and explanations about services offered by different dental specialists; a vocabulary section that explains the meaning of dental terminology such as a bridge, crown, or sealant; along with other pertinent information that subscribers may want or need to know when analyzing their statements.
The website currently allows subscribers to view their benefits and claims history, order an ID card, review deductible and maximum amounts, and confirm remaining balances. But Perroni said plans are in place to enhance it this spring and add new features that will make it even easier to navigate.
Food for Thought
Today, more than 1,200 employer groups in Massachusetts have partnered with Altus to provide dental insurance for their employees. “We typically add 10,000 to 15,000 new members each year,” Perroni said. He also touted speedy customer service, noting that, in 2012, Altus Dental and its parent company processed 1.5 million claims, and 99{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} were completed in fewer than 15 days.
So Altus plans to continue its quest to provide universal access to dental care through plans that start at $20 a month with help from the medical community that has compelling evidence of the connection between the health of a person’s mouth and their entire body.
