Dominion Dental Services, Inc.
As you may be aware, under section 9010 of PPACA and Section 1406 of the Reconciliation Act there is a health insurer fee (“HIF”) that will be distributed to all entities providing health insurance for any US health risk starting in 2014. Stand-alone dental policies are not excluded from the definition of health insurance, and therefore, Avalon Insurance Company ("Avalon") and Dominion Dental Services, Inc. (“Dominion”) will be among the entities that will pay the HIF. The distribution of the HIF to each entity is based on market share. Our market share analysis supports that Avalon and Dominion will pay a HIF of approximately 2% of total premiums in 2014.
In an effort to prepare for this fee, we are incorporating it into our 2013 rates.