California's Largest Dental Plan Grows Larger; 1995 Another Banner Year for San Francisco-Based Delta Dental.

SAN FRANCISCO--(BUSINESS WIRE)--April 10, 1996--Gross revenues, reserves and total enrollment at the state's largest dental health plan hit record highs last year, according to financial information just released by Delta Dental Plan of California.

Delta's 1995 financial performance included consolidated gross revenues of $2.15 billion, up from roughly $2 billion in 1994. The private, non-profit company added $19.8 million to its reserves, bringing them to $219 million.

An estimated 400,000 new enrollees were added during the year, bringing the total number of people covered by Delta to 11.6 million. Gains in Delta's national fee-for-service and dental HMO lines of business were particularly noteworthy.

National accounts, consisting of multi-state companies headquartered in California, eclipsed 1.2 million members -- an increase of 54 percent from 1994. Delta's HMO affiliate, PMI Dental Health Plan, posted enrollment gains of 19 percent, increasing to about 931,000 members.

Approximately 78 percent of all Delta's California commercial enrollees were covered last year under the company's most popular product line -- a managed fee-for-service program with 17,200 participating California dentists under contract. The HMO accounted for approximately 14 percent of all commercial enrollees, and Delta's PPO accounted for the remaining 8 percent.

Cost management systems tallied record savings last year of more than $154 million for Delta clients, or about 10.5 percent of all claims submitted.

A few of Delta's more specialized dental programs also posted notable gains last year. Enrollment in the company's "voluntary" dental programs grew by 33 percent. And Delta's point-of-service dental program, which combines HMO and fee-for-service features, grew 65 percent in 1995.

"Healthy growth occurred across virtually all lines of business," said Delta President and Chief Executive Officer William T. Ward. "The marketplace is moving in the direction of managed care, but purchasers are demanding many forms of it, including those that preserve long-standing, patient-dentist relationships."

Ward noted that Delta's 1995 consolidated financial performance leaves uninterrupted a continuous 41-year record of growth and expansion. The company's gross revenues have nearly doubled over the last four years as the popularity of dental benefits continues to be strong in California and throughout the nation.

Delta is the largest member of the national Delta Dental Plans Association, which nationally covers about 26 million Americans.

CONTACT: Delta Dental Plan, San Francisco 

Jeff Album, 415/972-8418