Ameritas No Longer Selling Individual and Small Group Dental in MA

In November 2022, Massachusetts became the first state to pass a Medical Loss Ratio (MLR) requirement for dental insurance companies to pay at least 83% of premium in claims or refund the difference to customers. That requirement becomes effective on January 1, 2024.

Eighty-three percent is more than Ameritas and other dental carriers in the marketplace spend on claims reimbursement today. Because dental insurance is a low premium product, to meet the 83% requirement, they would need to increase premium costs for customers in Massachusetts. That will be most difficult for individuals and small groups to absorb. Ameritas would also have to shift spending away from administrative expenses such as service, claims processing, and maintaining a dental provider network. These changes may adversely affect the quality of service to customers and limit their ability to see their preferred providers.
 
With that in mind, please be aware of the following changes in Massachusetts.
 
New business:

• Beginning with January 1, 2024, effective dates, Ameritas will no longer offer dental plans to individuals and small groups with fewer than 25 eligible employees.
• Effective immediately, Ameritas will no longer accept quotes for these groups or individuals.
• For new group business effective January 1, 2024, Ameritas will quote 0% commission regardless of group size.
• Ameritas will continue to offer dental plans to groups with 25 or more eligible lives in the state; and will continue to offer vision plans to all groups and individuals.

The dental MLR only applies to groups with Massachusetts as the situs state. It will not be applied to groups with a different situs state that have members or a division in Massachusetts. It also does not apply to self-funded (ASO) plans. (Ameritas offers ASO plans to groups with as few as 50+ enrolled.)
 
Existing group business:

The following will become effective immediately for your current group dental clients of all sizes in Massachusetts:

• revise all renewals to guarantee their current rate up to their 2026 renewal date
• groups in their initial rate guarantee will have their current rates extended to their 2026 anniversary date
• NO action taken on groups scheduled to renew in 2025
• NO changes to existing commissions
• If group dental clients have Ameritas vision, LASIK or hearing coverage, these changes will also apply to those benefits. Stand-alone vision policies (no dental) are NOT affected and will renew on their existing renewal date. 

Existing individual business: 

Ameritas will implement the following for your current individual dental policyholders in Massachusetts:

• revise all renewal dates to December 2023
• guarantee their current rate for 12 months to December 2024
• NO changes to existing commissions 
• NO changes to vision individual policies
• Ameritas will send copies of all new renewal notices for impacted groups and individuals.

If you have any questions about Ameritas’ response to MLR for dental in the state of Massachusetts, please contact your Ameritas sales representative.

If you have any questions, call us today at 866-568-9649!