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News Bulletin : ADA News Bulletin October 2011
3 OCTOBER 2011 F. Shane Fryer Federal President president’s comments “These figures do not portray the Private Health Insurance (PHI) industry in a good light and the AdA has called for PHI to increase dental rebates for all dental services annually.” nEIL HEWSOn – fdI SPEAKER It is with great pleasure that I am able to inform you that at the recent FDI World Dental Congress held in Mexico City, Dr Neil Hewson, Immediate Past President of the ADA was elected as Speaker of the General Assembly of the FDI World Dental Federation. Federal Council of the ADA had earlier endorsed Dr Hewson as a nominee for the position of FDI Speaker. The ADA delegation to FDI worked well in supporting Dr Hewson’s nomination. The role of the Speaker at an FDI General Assembly (the world dental parliament) is a senior and influential role. The Speaker presides over all meetings of the General Assembly to ensure the smooth running of proceedings and to facilitate delegate participation in discussion on worldwide oral health issues. As Speaker, Dr Hewson will also be a member of the FDI Council, participating in the executive decision making process that ensures the FDI remains relevant in our ever changing contemporary world. The FDI World Dental Federation was established in 1900 as the Fédération Dentaire International (FDI) in Paris, France. It has approximately 200 national dental associations and specialist groups as members, representing more than one million dentists. To my knowledge, Dr Hewson is only the second Australian to serve as FDI Speaker in the 110 year history of the FDI. Dr Hewson acknowledged the outcome of the election for the Speaker position with great dignity. Well done Neil and congratulations, you will represent the ADA and your country well. HEALTH fUndS And SURPLUSES/PROfITS It was with interest that I browsed through the recent report from the Private Health Insurance Administration Council (PHIAC). Two things in particular caught my eye. Firstly, a table (Table 1) was presented that showed the benefit paid to patients as a percentage of the cost of care for dental service has fallen from 54.5% in 2000 to 48.73% in 2010. This is more than a 10% decline. I have reported previously that the ADA’s 2010 Dental Fees Survey showed a modest 2.9% increase in dental fees and the private health insurance premiums for the same period increased on average by 5.8%. One wonders where the money has gone! Further reading of this PHIAC Report revealed a table (Table 2) showing the differential between Ancillary Income and Ancillary Payout. This profit or surplus in the ancillary section of the health fund business has increased by approximately 240% from $387 million in 2000/01 to $944 million in 2009/10. Thus, private health insurers in 2009/2010 kept just under one billion dollars or 23.62% of premiums from individuals who have taken out ancillary cover health insurance. Table 1 PRIVATE HEALTH INSURANCE – Benefit paid as a percentage of the cost of service for Dental Services 2000 to 2010 Year Number of services Fees charged (cost of the service) Benefits paid for services Average cost of service Average benefit paid to patient Benefits paid as % of cost of services 2000 16,224,856 1,255,697,000 686,873,894 77 42 54.50% 2001 19,923,999 1,575,518,000 876,464,773 79 44 55.70% 2002 21,501,375 1,771,760,000 965,563,252 82 45 54.80% 2003 21,837,694 1,886,382,000 993,246,116 86 45 52.30% 2004 22,756,855 2,082,321,000 1,051,117,913 91 46 50.50% 2005 23,297,702 2,230,007,000 1,098,089,121 96 47 48.90% 2006 23,999,526 2,414,322,000 1,187,205,239 101 49 48.50% 2007 25,072,735 2,638,144,000 1,283,302,782 105 51 48.60% 2008 26,687,191 2,925,375,186 1,414,241,884 110 53 48.34% 2009 27,739,510 3,118,928,845 1,509,763,524 112 54 48.41% 2010 28,829,591 3,295,090,696 1,605,632,781 114 56 48.73% Source: PHIAC – Statistical Trends in Membership & Benefits Data Tables December 2010.
ADA News Bulletin September 2011
ADA News Bulletin November 2011