Small Group Dental Is Different - Are You Managing What Matters?

There’s no way around it: managing small group dental is an art and takes a different approach than more consistent and experience-rated large groups. Factor for the nuances of churn, loss ratio swings, and group and broker experience, some dental plans simply don’t know where to start when it comes to managing what matters.

One thing all plans know for sure is that growth, stability, and profitability in your small group business are key to finding success. So, in today’s competitive marketplace, what can you do to get it right for your groups and brokers? Below are some strategy tips to get you started.

Small groups sometimes run hot

One or two claims can spin a small group’s loss ratio outside an organization’s target. But, just as quickly as they can run hot, they can bounce back within target. So, take a step back, and don’t be so quick to give a small group a large rate increase when this happens. Especially, if you have history with the group and previous years have run within an acceptable range.

Don’t fire your small group brokers

Brokers count on you to deliver reasonable price increases that don’t shock their groups. When you give a group a large premium increase, you’re not only firing the group but also the broker. I have not known a broker who enjoys meeting with a small business to give them the news of a large and mostly unexpected premium increase. Remember, small groups hire brokers, and brokers hire you.

Small groups often moderate in later durations

A small group that has a couple of large claims has now cleared and resolved these services and the plan has already paid the cost. Consequently, the problem is often resolved, and loss ratios can moderate nicely in later durations. Alternatively, if they leave you based on a large rate increase, then you have possibly paved the way for your competitor to enjoy a clean slate at your expense.

Properly managing your small group business and brokers can offer some of the most fruitful opportunities for growth, stability, and profitability. Plus, you’re supporting small businesses and the employees who count on affordable, consistent, and quality dental benefits. At Strategic Dental we specialize in working with teams to implement small group underwriting and renewal strategies that grow broker relationships, trust, and deliver the results you want.

Contact Us today or visit Strategic Dental to learn more!