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AMCD NEWSLETTER • February 2006
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Notes from the AMCD President, John Maguire D.D.S. M.P.H.
As we begin 2006 the challenges facing our profession are increasingly complex and challenging. The focus of our organization is to exchange information and educate our members and our profession about the intricacies of dealing with managed dental care.
As our organization has evolved over the last 14 years the focus of what are the critical issues facing us has changed significantly.
A couple of these categories are:Contracting between Dentists and Plans/insurance companies. The premise that a dentist can set a fee that is “reasonable” and expect a third party to pay a percentage of this fee is no longer a viable business model for dental insurance. The demise of capitated plans that shifted the risk of insurance from the company to the dentist has followed a twisted course. In principal, based on an economic model of risk, a capitated plan should be more profitable and lucrative for a dentist as they assume more risk than does the plan. Alas this has not turned out to be the case. In some parallels to the medical HMO industry the so called “market demands” of patients required continuing adjustments of plans such that the requirements of delivering care has become so complex, the economic viability of delivering care becomes a matter of the expertise within individual practices. There are better ways to deliver care.
The cost of medical care is squeezing some of our largest corporations, our state and federal budgets and there is no let-up in sight. The premium cost of a “reasonable” health care plan now can easily exceed the U.S. minimum wage. Health care now accounts for 15 % of the US Gross Domestic product (GDP) and this percent is increasing. Dentistry has always been regarded as “different” when it comes to health care. Dental plans are rarely associated with medical plans yet the link between dental health and personal health is unequivocal from a health professional’s perspective yet because dental plans are often an optional benefit, they have been under increasing pressure to be curtailed. Will dental benefits as we know them be non existent in the future? Will dentistry be a part of the medical world in the future or will dentistry become a separate benefit that is largely unaffordable for many. If this occurs will the government change licensure standards to meet community needs?
On November 5 2005 we had our annual meeting at the LAX Marriott. We had a strong attendance and more importantly an enthusiastic audience with no shortage of questions and comments for the invited speakers. Our next meeting is scheduled for October 28, 2006, mark your calendars please. Please look at our sponsors and use their services when possible, our corporate sponsors make this meeting possible.
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