Why Compliance Remains Key to the Long-Term Success of Dental Membership Plans

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Written By Dave Monahan

In a recent LinkedIn Live fireside chat, I had the opportunity to discuss some important progress since the merger of Kleer and Membersy last summer. One area we continue to focus on is compliance. I’m deeply passionate about it, and it is crucial to our success and the success of our dental groups and practices.

We’re now cleared to operate in all 50 states, but compliance is more than just about ticking boxes and obtaining licenses.

Navigating the complexities of state compliance

Each state has unique laws and regulations governing membership plans, often under Discount Medical Plan Organization (DMPO) laws. Seth Bills, Kleer and Membersy’s General Counsel and Chief Compliance Officer, discussed the importance of regulatory compliance for dental membership plans with Group Dentistry Now, emphasizing that plans are regulated to protect consumers, and that non-compliance can lead to legal and financial penalties and damage a practice’s reputation.

It’s not a one-size-fits-all situation. States have different laws regarding dental membership plans that affect our 20,000+ dentist partners that operate across all 50 states. Our partners include seven of the 10 largest DSOs and 300+ group practices, many of which have offices across multiple state lines. Keeping our DSO and group practice partners compliant is a key initiative for Kleer and Membersy. It’s not just a legal requirement but a testament to our commitment to creating a worry- and risk-free environment for our partners.

Going beyond licensure: Building strong relationships with regulators

We work to build — and maintain — strong, personal relationships with state regulators. We believe that preserving open lines of communication helps us identify and address issues before they arise. This proactive approach helps to ensure that we are ready to adapt to any changes and continue our journey towards compliance and your success.

Why compliance matters more than ever

DMPO laws define what constitutes a “discount medical plan” and a “discount medical plan organization,” typically involving arrangements where, in exchange for fees, consumers gain access to discounted healthcare services from participating providers. States require DMPOs to register or obtain a license with the state’s insurance department or a similar regulatory body, which often involves providing information about the organization’s structure, financial stability, and marketing practices.

Some states even require DMPOs to maintain a certain level of financial stability, such as a minimum net worth and/or surety bonds, to ensure they can fulfill their obligations, often including provisions for handling consumer complaints and enforcing penalties for violations. As you consider a dental membership plan, be prepared to ask your partner the steps they take to ensure DMPO compliance.

Kleer and Membersy (and our affiliate, The CDI Group) have invested significant time and resources to obtain the necessary licensure in every state that requires it. This time-intensive initiative clearly demonstrates our long-term vision that extends well beyond the merger of the two companies.

Compliance is fundamental to the long-term success and sustainability of dental membership plans and the practices that rely on them to drive more visits, higher treatment acceptance, and greater use of high-value services. I believe there are three key benefits of prioritizing compliance:

Build trust among dental practices, DSOs, and patients. It’s the bedrock of our business and yours.
Ensure stability to create a predictable environment for membership plans to thrive.
Protect stakeholders and safeguard the interests of everyone involved, from practices and patients to our own team.

Compliance is not just a regulatory hurdle — it’s a cornerstone of success. Whether you’re a solo practice or manage hundreds of locations, a dental membership plan with compliance at its core will allow you to see results from your very first member, leading to loyal patients, more care, and higher revenue.

To help your practice navigate these complexities, our ebook, Fantasy vs Fact: Your Playbook to Dental Membership Plan Compliance, breaks down common misconceptions and provides clear guidance on staying compliant.

Note: Kleer and Membersy is not affiliated with or endorsed by any state insurance department.