Delta Dental of Kentucky
20ı2 Annua l Report
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Smiles are essential to everything we do here at Delta Dental of Kentucky. As the universal
symbol for good health and happiness, the smile is core to our mission to improve oral
health. “SMILE” is also at the heart of our core values. It is the value proposition of our
commercial and individual products.
Indeed, in 2012 we were able to help bring more smiles to Kentuckians than ever before. Our
membership hit a new high, and with that, we were able to make great contributions back to
the communities we serve.
In fall of 2012, we continued building smiles by doing a benefit for Special Smiles–Special
Olympics, an organization with a mission to increase access to dental care for Special
Olympics athletes.
As part of the Renaissance Health Service Corporation, we have also seen an increase in
smiles through more members at all of our affiliated companies. This exhibits continued
growth despite economic forces and a less-than-favorable environment.
Our success must be attributed to our employees, as they are the ones most responsible for
the smiles of our members. From sales and marketing to operations and customer service,
our internal team makes it as seamless as possible for our members to receive their benefits
for a bright and healthy smile.
As these pages unfold, you will see how we keep the smiles growing.
Clifford T. Maesaka Jr.
President and Chief Executive Officer
Smile and the world smiles with you.
Delta Dental of Kentucky was formed in 1966 to improve the oral health of
all Kentuckians. This provided the firm foundation on which we built our
company and our values, and at the center of our values lies our ultimate
goal: smiles. We believe that improving oral health and adhering to our
commitments to diversity, the community, innovation, collaboration, and
integrity will ensure that more people will be smiling because of us.
Diver S ity
Community Co M mitment
Innovat I on
Col L aboration
Int E grity
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Supporting loca l programs.
Proudly sponsoring smiles.
We are committed to improving ora l hea lth in the communities we serve. We proudly sponsor
smiles by providing funding to University of Kentucky and Western Kentucky University Mobile
Dental Vans; improving childhood literacy; and providing toothbrushes, mouth guards, and oral
health education to the community.
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We believe one of the best ways to create
more smiles in the Commonwealth is through
education. Our "Teeth on the Go" kits provide
teachers of grades K through 6 with an oral
health curriculum that is second to none. In
2012, this program was taught in more than 60
elementary schools around the state, and has
reached thousands of students through the years.
Childhood literacy is a strong component of a
According to the National Association of
Dental Plans, 130 million Americans do not
have dental insurance, and people without
dental benefits are 2.5 times less likely to visit
the dentist. Our support of Smile Kentucky!
helps provide education and treatment to the
underserved in our community.
We make a living by what we
get, but we make a life by what
we give.
– Winston Churchill
lifetime of good oral health, and Delta Dental
also supports programs that provide reading
materials to children in our community. Our
employees collected and donated over 250 books
this past winter.
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Building a better network.
Providing affordable access.
What makes people smile? Saving money. We design our products, build our networks, and manage our
business in ways that help our members save on out-of-pocket costs. We provide value to our customers,
and they must agree, because our family of companies added $265.6 million in new business, and the
total number of covered people grew to 11.6 million. These plans were available in Kentucky in 2012:
Delta Dental Premier®
Delta Dental PPO plus Premier
With 142,000 dentists in more than 251,000
Plan members can choose a dentist from the
locations, this is the largest network of
Delta Dental PPO or the Delta Dental Premier
participating dentists in the country. A network
network, which provides them even more choices
of this size makes it easier for members to stay
for staying in-network.
in-network, thereby saving on out-of-pocket costs.
Delta Dental PPOSM
Individual and Family Plan
This network has more than 83,900 dentists
The Individua l Plan offers coverage and peace
practicing in over 168,000 locations. Members
of mind to people not covered under traditiona l
can see even deeper discounts when visiting a
group benefits.
PPO dentist.
DeltaCare (Dental HMO)
People covered by this plan receive dental services
from a smaller network of dentists, but pay less
for services.
88%
of Kentucky dentists
participate in
our networks.
The Delta Denta l Difference®
One key to great service is focusing on one
thing and doing it rea lly well. At Delta Dental
of Kentucky, all we do is dental. All of our
employees, including Customer Service and
Claims staff, are dedicated to dental, which
enables us to provide the best. And our statistics
show that's a fact.
To give real service you must
add something which cannot
be bought or measured with
money—sincerity and integrity.
– Douglas Adams
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By the numbers.
2012 Financial Results as of December 31 (000s omitted)
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Delta Denta l of Kentucky Inc. and Subsidiaries
20122011
Assets
Cash and Investments
$54,509 $47,963
Premiums Receivable
8,067 7,497
Property and Equipment
9,321 9,572
Other Assets
5,114 4,999
Total Assets
$77,011 $70,031
Liabilities and General Reserves
Claims Reserves
$5,623
$5,159
Claims Checks Outstanding
6,304
6,203
Other Liabilities
6,036
5,953
Total Liabilities
17,963
17,315
Genera l Reserves –Unrestricted
59,048 52,716
Total Liabilities and General Reserves
$77,011
$70,031
2012
2011
Tota l Assets
$998,905
$793,238
Capita l and Genera l Reserves
699,824
544,906
Tota l Revenues
2,953,977
2,635,641
Tota l Benefits and Expenses
2,869,234
2,561,761
84,743
73,880
Renaissance
Hea lth Service Corporation (RHSC)1
Operating Income
Cost Management Results
RHSC1Kentucky
Submitted Charges
$5.9 billion $320 million
Paid Charges
$2.7 billion $138 million
Total Cost Management Savings
$3.2 billion $58 million
The Delta Dental Difference $1.0 billion
$19 million
Other Savings
$2.1 billion
$39 million
®
Key
Business Accomplishments
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RHSC1Kentucky
New Business Revenue
Total Covered Members
$ 265.6 million
$7 million
11.6 million 649,811
Business Renewal Rate
97.88%
Service Accomplishments
Kentucky
Total Claims Processed
1,081,332
Claims Processed in 10 Days or Less
97.83%
Financial Processing Accuracy
99.85%
Call Center – Average Speed of Answer
21 seconds
Premium Revenues
2010
$161,032
2009
$152,118
$127,965
2008
$137,936
$124,050
(000s omitted)
2011
2012
1. Combined financial, operational, cost management, and coverage results are for Renaissance Health Service Corporation
(RHSC) and Affiliates, which include Renaissance Health Service Corporation; Renaissance Life and Health Insurance
Company of America; Renaissance Health Insurance Company of New York; Delta Dental Plan of Michigan, Inc.; Delta Dental
Plan of Ohio, Inc.; Delta Dental Plan of Indiana, Inc.; Delta Dental of Tennessee; Delta Dental Plan of Kentucky;
Delta Dental Plan of New Mexico; Delta Dental of North Carolina; and Delta Dental Fund. Delta Dental is a registered
trademark of the Delta Dental Plans Association. The Renaissance trade name and marks are owned by Renaissance Health
Service Corporation and are not sponsored or endorsed by the Delta Dental Plans Association.
It is more rewarding to watch money change the world
than watch it accumulate.
– Gloria Steinem
Board of Directors
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Michael Childers, D.M.D.
Chairman
(Louisville, Kentucky)
Clifford T. Maesaka, Jr., D.D.S.
President & CEO
Delta Dental of Kentucky
(Louisville, Kentucky)
J. Jude Thompson
Vice Chairman
Owner
Transform Business Solutions, LLC
(Louisville, Kentucky)
Michael B. Mountjoy, CPA
Co-Managing Partner
Mountjoy Chilton Medley, LLP
(Louisville, Kentucky)
Carrie B. Brown, D.M.D.
(Myrtle Beach, South Carolina)
John L.G. Richards
(Louisville, Kentucky)
Mary Michael Corbett
SVP, Health Policy &
Government Relations
Norton Healthcare
(Louisville, Kentucky)
C. Richard Seitz
Director
Renaissance Health Services Corp
(Okemos, Michigan)
Olivia F. Kirtley, CPA
Business Consultant
(Louisville, Kentucky)
Bruce R. Smith
Consultant
(Covington, Kentucky)
J. David Smith
Stoll Keenon Ogden PLLC
(Lexington, Kentucky)
Jeffrey C. Smith, D.M.D.
(Florence, Kentucky)
John N. Williams, Jr., D.M.D.
Dean
Indiana University School of
Dentistry
(Indianapolis, Indiana)
Officers
Michael Childers, D.M.D.
Chairman
Stephen Charles Day
Vice President &
Chief Marketing Officer
Goran Jurkovic
Vice President,
Chief Financial Officer
Clifford T. Maesaka, Jr., D.M.D.
President &
Chief Executive Officer
Angela Zuvon Nenni
Vice President,
Professional Services &
Information Technology
John Linton Weeks III
Vice President,
General Counsel & Secretary
Gina Renee Whitlow
Assistant Secretary
Russell W. Skaggs
Vice President, Finance
Barbara Faust Stonebraker
Assistant Secretary
Tammy York-Day
Vice President, Operations
J. Jude Thompson
Vice Chairman
Never doubt that a sma ll group
of thoughtful, concerned
citizens can change the world.
Indeed it is the only thing that
ever has.
– Margaret Mead
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Delta Dental of Kentucky
10100 Linn Station Road
Louisville, KY 40223
DeltaDentalKY.com