Promoting direct reimbursement

The Direct Reimbursement Promotional Co-op Program will continue to reimburse state dental societies for their promotional and marketing activities related to DR in 2009.

The program has an annual budgetary cap of $150,000 on total benefits to pay out to all constituent dental societies combined. In 2008, 12 state dental societies utilized more than $149,000 to supplement their local DR promotional efforts.

The program has increased each year since its inception in 2005. In 2007, seven states were reimbursed $86,597.

“The Council on Dental Benefit Programs is very pleased with the success of this program,” said Dr. James Hight, chair of the Dental Benefit Information Service Subcommittee and a member of the council. “States that have participated realize the value of co-oping their DR promotional expenses with the ADA. States looking to start DR promotion have the opportunity to get their feet wet by mentoring with states where DR has been successful.”

The ADA allowance or reimbursement is for states participating as mentors or those willing to work with a mentoring state, and includes:

• States that already have an established DR program: This includes state dental societies that have budgets for DR promotional efforts.
• States that do not have an established DR program: This includes state dental societies that do not have a budget for DR promotional efforts or a budget of less than $5,000.
• Up to $30,000 reimbursement for DR promotion expenses for state dental societies willing to participate as mentors for other states.
• Up to $5,000 reimbursement for DR promotion expenses and up to an additional $10,000 reimbursement (for a total of $15,000), if working with a mentor state dental society on developing a DR program.

All reimbursements are made on a first-come, first-served basis. For this reason, the council recommends that requests for reimbursement be submitted as soon as possible so states can be reimbursed before funding is depleted.

Monies paid out to constituent dental societies can be spent only by the constituent dental societies for DR promotions within their state. Many state dental societies contract with brokers and third party administrators to handle and follow-up on leads generated in their states.

Brokers and TPAs may express interest in assisting states to utilize the co-op dollars available, but the co-op dollars are not intended to fund any one broker’s business or marketing expenses. For example, funds cannot be used to pay for a broker’s travel related expenses (hotel, meals, mileage, etc.), or for the broker’s time.

Below are specific examples of marketing activities and programs that were eligible for reimbursement in 2008:

• placement of print advertisements in local publications;
• mailing lists for direct mail promotions including postage costs;
• sponsorships and exhibitor booth fees for human resources and employee benefit conferences;
• purchase of DR cost-estimation software;
• radio and television advertising;
• DR breakfast and luncheon seminars;
• DR Website development;
• printing of DR promotional materials and brochures.

The final decision for eligibility of funds rests with the council. Reimbursement requests and any questions or concerns about what expenses are eligible for reimbursement should be directed to Dennis McHugh, manager, ADA Council on Dental Benefit Programs. Call the ADA toll-free, Ext. 2586, or e-mail mchughd@ada.org.聽