Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: DIRECT PREMIUMS

  total $898,236,054 · related or exempt $898,236,054

• 3 · Investment income

  total $12,999,854 · related or exempt $12,999,854

• 7a · Gross sales of assets other than inventory

  securities $23,213,703

• 7b · Less cost or other basis and sales expenses

  securities $23,037,646

• 7c · Gain or loss

  securities $176,057

• 7d · Net gain or loss

  total $176,057 · related or exempt $176,057

• 11a · Other revenue: BAD DEBT EXPENSE

  total -$645,400 · related or exempt -$645,400

• 11b · Other revenue: MISC EXPENSES

  total -$3,038,031 · related or exempt -$3,038,031

• 11e · Other revenue, total

  -$3,683,431

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $2,449,420 · program services $2,449,420

• 4 · Benefits paid to or for members

  total $783,524,378 · program services $783,524,378

• 5 · Compensation of officers, directors and key employees

  total $3,076,841 · program services $2,851,337 · management and general $225,504

• 7 · Other salaries and wages

  total $34,859,701 · program services $31,103,955 · management and general $3,755,746

• 8 · Pension plan contributions

  total $5,992,244 · program services $5,395,460 · management and general $596,784

• 9 · Other employee benefits

  total $6,376,117 · program services $5,741,102 · management and general $635,015

• 10 · Payroll taxes

  total $2,477,457 · program services $2,230,720 · management and general $246,737

• 11b · Fees: legal

  total $222,197 · management and general $222,197

• 11c · Fees: accounting

  total $373,118 · management and general $373,118

• 11f · Fees: investment management

  total $218,277 · management and general $218,277

• 12 · Advertising and promotion

  total $759,116 · program services $683,514 · management and general $75,602

• 13 · Office expenses

  total $3,677,487 · program services $3,311,236 · management and general $366,251

• 14 · Information technology

  total $1,037,051 · program services $933,768 · management and general $103,283

• 15 · Royalties

  total $1,942,163 · program services $1,942,163

• 16 · Occupancy

  total $4,711,038 · program services $4,241,853 · management and general $469,185

• 17 · Travel

  total $972,643 · program services $875,775 · management and general $96,868

• 19 · Conferences, conventions and meetings

  total $313,236 · program services $282,040 · management and general $31,196

• 20 · Interest

  total $12,072 · program services $12,072

• 22 · Depreciation, depletion and amortization

  total $769,783 · program services $693,118 · management and general $76,665

• 23 · Insurance

  total $1,337,595 · program services $1,204,380 · management and general $133,215

• 24a · Other expenses: COST TRANSFERS

  total $19,659,878 · program services $17,701,897 · management and general $1,957,981

• 24b · Other expenses: COMMISSIONS

  total $13,156,446 · program services $13,156,446

• 24c · Other expenses: OUTSIDE SERVICES

  total $3,155,252 · program services $2,841,012 · management and general $314,240

• 24e · All other expenses

  total -$995,394 · program services -$1,232,588 · management and general $237,194

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  end of year $1,500,955

• 2 · Savings and temporary cash investments

  beginning of year $15,117,298 · end of year $22,335,681

• 4 · Accounts receivable

  beginning of year $63,997,343 · end of year $77,181,542

• 7 · Other notes and loans receivable

  beginning of year $5,000,000 · end of year $5,000,000

• 9 · Prepaid expenses and deferred charges

  beginning of year $2,990,669 · end of year $10,074,089

• 10a · Land, buildings and equipment: cost or other basis

  $27,499,846

• 10b · Land, buildings and equipment: accumulated depreciation

  $15,131,191

• 10c · Land, buildings and equipment, net

  beginning of year $9,278,206 · end of year $12,368,655

• 11 · Investments: publicly traded securities

  beginning of year $272,009,901 · end of year $285,414,739

• 12 · Investments: other securities

  beginning of year $31,776,564 · end of year $38,622,599

• 17 · Accounts payable and accrued expenses

  beginning of year $86,169,314 · end of year $109,302,137

• 19 · Deferred revenue

  beginning of year $5,783,038 · end of year $6,296,038

• 25 · Other liabilities

  beginning of year $18,593,735 · end of year $24,303,934

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $289,623,894 · end of year $312,596,151

The filer's explanations (Part III)

PART I, LINE 1A

FINANCIAL AND TAX PLANNING EXPENSES ARE REIMBURSED TO EMPLOYEES AT THE DIRECTOR OR ABOVE LEVELS OF MANAGEMENT. A COMPANY POLICY OUTLINES THE MAXIMUM REIMBURSEMENT ALLOWED FOR EACH MANAGEMENT LEVEL. TWO COMPANY EXECUTIVES RECEIVED REIMBURSEMENTS FOR FINANCIAL AND TAX PLANNING EXPENSES IN 2023.

PART I, LINE 3

COMPENSATION PAID TO THE CEO AND EXECUTIVE VICE PRESIDENTS IS APPROVED BY THE COMPENSATION COMMITTEE OF THE ORGANIZATION. THE COMPENSATION COMMITTEE APPROVES COMPENSATION FOR THE ENSUING YEAR AFTER REVIEWING COMPARABILITY DATA PRESENTED BY AN INDEPENDENT OUTSIDE COMPENSATION CONSULTANT, AN ASSESSMENT OF EACH OFFICER'S PERFORMANCE OVER THE PRECEDING YEAR, AND THE ORGANIZATION'S PROGRAM ACCOMPLISHMENTS FOR THE PRIOR YEAR. COMPENSATION PAID TO DIRECTORS IS ALSO APPROVED BY THE COMPENSATION COMMITTEE AFTER REVIEWING COMPARABILITY DATA IN A BENCHMARKING STUDY PREPARED AND PRESENTED BY AN INDEPENDENT OUTSIDE COMPENSATION CONSULTANT RETAINED BY THE BOARD OF DIRECTORS. THESE PROCESSES WERE FOLLOWED FOR 2023 COMPENSATION.

PART I, LINE 4A

DURING 2023, ONE EXECUTIVE, KEVIN L. JACKSON RECEIVED A SEVERANCE PAYMENT UPON SEPARATION FROM THE ORGANIZATION. THIS PAYMENT IS INCLUDED ON SCHEDULE J AND REPORTED IN PART II, COLUMN (B)(III).

PART I, LINE 7:

THE CEO OF THE ORGANIZATION, WITH BOARD OF DIRECTORS APPROVAL, MAY GRANT AN ANNUAL BONUS TO ALL MANAGEMENT EMPLOYEES. THESE AMOUNTS ARE INCLUDED IN TAXABLE COMPENSATION. DELTA DENTAL OF PENNSYLVANIA MAINTAINS A LONG-TERM INCENTIVE PLAN (LTIP) FOR ELIGIBLE EMPLOYEES OF THE ORGANIZATION, LINKING COMPENSATION TO THE COMPANY'S PERFORMANCE. USING SUCCESS METRICS SUCH AS REVENUES, NET GAIN AS A PERCENTAGE OF REVENUES, AND OTHERS, ALLOWS THE COMPANY TO ACCURATELY MEASURE ITS GROWTH, INFORM ON PROGRESS OF ITS BUSINESS TRANSFORMATION, AND EMPOWER CONTINUED SUCCESS. THE LTIP IS UNFUNDED AND ALL PAYMENTS FROM THE LTIP ARE DERIVED FROM THE GAINS OF THE COMPANY. AS SUCH, THERE IS NO GUARANTEE OF INCENTIVE PAYMENTS UNDER THE LTIP. THE CEO MAKES RECOMMENDATIONS TO THE COMPENSATION COMMITTEE FOR ITS REVIEW AND APPROVAL REGARDING THE PERFORMANCE OBJECTIVES, BOTH FINANCIAL AND NON-FINANCIAL, UPON WHICH PAYMENT OF AWARDS ARE BASED AND THE TIME PERIOD DURING WHICH PERFORMANCE SHALL BE MEASURED. EACH LTIP PLAN SPANS THREE YEARS, OVERLAPPING WITH CURRENT PLANS. THESE AMOUNTS ARE INCLUDED IN TAXABLE COMPENSATION.

PART II, ROW (II):

SOME OF THE ORGANIZATION'S OFFICERS ARE PAID BY A RELATED ORGANIZATION. ACCORDINGLY, THEIR COMPENSATION IS REPORTED ON ROW (II).

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• DENTEGRA GROUP INC

  C · HOLDING COMPANY · DE

• DENTEGRA INSURANCE COMPANY

  C · INSURANCE COMPANY · DE

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DENTEGRA INSURANCE CO OF NEW ENGLAND

  C · INSURANCE COMPANY · MA

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF NEVADA INC

  C · INSURANCE COMPANY · NV

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF UTAH INC

  C · INSURANCE COMPANY · UT

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL PROGRAMS INC

  C · INSURANCE COMPANY · TX

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF ALABAMA INC

  C · INSURANCE COMPANY · AL

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF NEW MEXICO INC

  C · INSURANCE COMPANY · NM

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF ARIZONA INC

  C · INSURANCE COMPANY · AZ

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DELTA DENTAL OF PUERTO RICO

  C · INSURANCE COMPANY · RQ

  Directly controlled by DELTA DENTAL OF CALIFORNIA

• DELTA DENTAL INSURANCE COMPANY

  C · INSURANCE COMPANY · DE · 0.12% owned

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DDC INSURANCE HOLDINGS INC

  C · HOLDING COMPANY · DE

  Directly controlled by DELTA DENTAL OF CALIFORNIA

• ALLIED ADMINISTRATORS INC

  C · THIRD PARTY ADMIN SERVICES · CA

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DELTA DENTAL IPA OF NEW YORK

  C · INDEPENDENT PRACTICE ASSOCIATION · NY

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ORAL HEALTH INNOVATION CENTER INC

  C · INACTIVE · DE

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DENTEGRA SEGURO DENTALES SA

  C · INSURANCE COMPANY · MX

  Directly controlled by DENTEGRA INSURANCE COMPANY