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Letter to Patients When Dropping Insurance

December 22, 2024
Written by: Jordon Comstock

letter template when dropping out of PPOs

Download our letter template when dropping out of PPOs + other forms and templates!

Grab them before we take them off our website…

Transitioning away from dental insurance networks is a significant decision for any dental practice. If you’re choosing to drop insurance plans, one of the most important steps is to communicate this change effectively to your patients. A well-crafted letter to patients dropping insurance can make all the difference, ensuring patients feel valued, informed, and supported throughout the transition. Here’s a comprehensive guide to crafting a thoughtful, reassuring message that maintains patient trust and provides clarity about their options moving forward.

Why a Patient Letter Is Essential When Dropping Insurance

When a practice decides to leave an insurance network, patients may feel uncertain or concerned about what it means for their care. A letter provides a personal touch, helping patients understand the reasons behind the decision and outlining alternative options available to them. This approach fosters transparency, empathy, and a sense of continuity, helping to reassure patients and retain their loyalty.

Builds Trust and Transparency
A letter gives you the chance to explain why you’re making this change in a transparent way. By discussing how it benefits patient care and long-term value, you can reassure patients that their best interests are at the forefront.

Reduces Misunderstandings
Without clear communication, patients may assume that leaving their insurance network means they can no longer receive care at your practice. A letter clarifies that patients are still welcome, outlines alternative payment options, and provides next steps.

Encourages Patient Retention
By providing solutions, such as membership plans or payment alternatives, in your letter, you demonstrate that you’re committed to making their continued care affordable and accessible.

Importance of Activating a Strong Marketing System and Growing a Patient Membership Plan

As you transition away from insurance networks, having a robust marketing strategy and an active patient membership plan are vital for your practice’s stability and growth. A well-designed membership plan not only replaces lost revenue from PPOs but also provides patients with an affordable, accessible alternative to traditional insurance. Marketing this plan effectively will be crucial to retaining current patients and attracting new ones.

Why a Membership Plan Works

Membership plans provide a flexible, insurance-free payment model, offering patients essential preventive care and discounts on other services for a fixed monthly or annual fee. Patients often prefer membership plans over insurance due to the simplicity, transparency, and affordability of these plans, particularly those who don’t have insurance coverage. For the practice, membership plans generate consistent, recurring revenue and foster loyalty by aligning patient and practice interests.

Turning on a Marketing System for Membership Growth

Effective marketing is key to educating patients about your membership program and its benefits. When dropping insurance, it’s essential to let patients know that they have affordable options and that your practice is committed to their care. Some effective strategies include:

  1. Patient Education
    Inform patients about the membership plan through email newsletters, social media posts, and personalized letters. Educational content that explains the benefits, such as savings on treatments and preventive care, will resonate with patients.
  2. Website and Online Presence
    Ensure your website prominently displays information about the membership plan, including a dedicated page outlining its benefits, pricing, and enrollment process. Patients searching for insurance-free options will appreciate the clarity and accessibility.
  3. Staff Training
    Equip your team to discuss the membership plan confidently with patients. Train front-office staff to explain the plan’s value and answer common patient questions about transitioning away from insurance.
  4. In-Office Marketing
    Use your office space to promote the membership plan. Posters, brochures, and digital screens can communicate the plan’s benefits to patients during their visits.

letter template when dropping out of PPOs

Download our letter template when dropping out of PPOs + other forms and templates!

Grab them before we take them off our website…

What BoomCloud Can Do for Dental Practices

Implementing and managing a membership program is simplified with the help of platforms like BoomCloud, a leading membership plan software designed specifically for dental practices. BoomCloud is more than just software—it’s a comprehensive solution that makes membership plan management seamless, scalable, and effective.

Features and Benefits of BoomCloud

Automated Billing and Renewals
BoomCloud automates billing and membership renewals, ensuring that your practice receives a steady flow of income each month. Automated processes save time, reduce administrative burdens, and eliminate the need for manual billing follow-ups.

Customizable Membership Plans
Every dental practice has unique needs, and BoomCloud allows you to tailor membership plans that suit your patient demographic and practice goals. You can customize fees, services included, and add-ons to maximize patient satisfaction and revenue.

User-Friendly Dashboard and Analytics
BoomCloud’s dashboard provides easy access to all membership data, allowing you to track enrollment numbers, recurring revenue, and patient savings. Analytics features offer insights into plan performance, helping practices adjust and improve over time.

Marketing and Communication Tools
BoomCloud includes marketing automation and patient communication features to help practices reach out to potential and existing members. This ensures that patients stay informed, engaged, and are reminded of the value they receive from the membership.

Seamless Integration with Practice Management Software
BoomCloud integrates with many practice management systems, streamlining operations by ensuring that membership data syncs with your patient records. This integration reduces double-entry and ensures that patient data remains consistent across platforms.

How BoomCloud Helps with Patient Retention

BoomCloud’s features are designed to support long-term patient retention and satisfaction. By offering an easy-to-understand, valuable alternative to traditional insurance, BoomCloud enables practices to transition away from PPOs without risking patient attrition. With BoomCloud, patients can access preventive care and discounts on other services, making the switch to a membership model feel seamless and rewarding.

Example:
After implementing BoomCloud, many practices report increased patient retention and higher patient satisfaction scores. Practices can build stronger relationships with patients as they return regularly for preventive care, improving health outcomes and reinforcing trust.

Key Components of a Patient Letter Dropping Insurance

A well-structured letter is more likely to be effective and well-received. Here are the essential components your letter should include.

1. Warm Greeting and Acknowledgment of Patient Value

Begin with a personal greeting and an expression of gratitude for the patient’s loyalty and trust in your practice. This opening tone should set the stage for a supportive, patient-focused message.

Example:
“Dear [Patient’s Name],
We sincerely appreciate the trust you’ve placed in us to care for your dental health. You are an important part of our practice, and we are dedicated to continuing to provide you with the highest quality of care.”

2. Clear Explanation of the Change

Introduce the decision to leave the insurance network in straightforward, professional language. Keep the explanation clear and concise without excessive technical terms or negative phrasing. Emphasize that this change is meant to improve patient care.

Example:
“After careful consideration, we have decided to end our participation with [Insurance Company Name] as of [Date]. This change allows us to focus on delivering more personalized and comprehensive care to each of our patients, without the restrictions imposed by insurance policies.”

3. Alternative Options for Patients

Reassure patients that they have options. Introduce any alternative solutions you’re providing, such as a membership plan through BoomCloud, self-pay discounts, or financing options. Explain how a membership plan can make their care affordable and accessible, similar to what they’re used to with insurance.

Example:
“To make this transition easier, we’re excited to offer our [Practice Name] Membership Plan through BoomCloud. This plan includes routine cleanings, exams, and discounts on additional treatments, all for a convenient monthly or annual fee.”

letter template when dropping out of PPOs

Download our letter template when dropping out of PPOs + other forms and templates!

Grab them before we take them off our website…


FAQs

What should I include in a letter to patients when dropping insurance?
Your letter should explain the change, why you’re dropping the insurance, any alternative options for patients (such as membership plans), and contact information for questions. Aim for clarity, empathy, and transparency.

How does BoomCloud help dental practices grow a membership plan?
BoomCloud automates billing, renewals, and provides an easy-to-use dashboard to track plan performance. Its marketing features help practices educate and engage patients about the benefits of joining the membership plan.

What marketing strategies can I use to promote a membership plan?
Use email newsletters, your website, social media, and in-office materials to educate patients about the membership plan. Staff training is also key so that team members can confidently explain the plan’s benefits.


Conclusion

Crafting a compassionate letter to patients dropping insurance and implementing a well-structured membership plan, such as with BoomCloud, can make your practice’s transition away from insurance smoother and more successful. Patients receive the care they deserve, with clear options for affordability, while your practice gains financial stability and independence from restrictive insurance models. With thoughtful communication, robust marketing, and a patient-centered membership program, your practice can thrive and continue delivering exceptional care.

letter template when dropping out of PPOs

Download our letter template when dropping out of PPOs + other forms and templates!

Grab them before we take them off our website…

My Top Podcasts

Download "The Million Dollar Dental Membership Plan" E-book!

Learn tactics and strategies from practices that have built a million dollars in recurring revenue from their membership subscriptions alone! Creating a patient membership plan is the smartest strategy to implment in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & improve your case acceptence by 3X with members. Download the book Now!

Membership Plans For Optometrists

vision-membership-plan-ebook Learn tactics and strategies from practices that have built a million dollars in recurring revenue from their membership subscriptions alone! Creating a patient membership plan is the smartest strategy to implement in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & improve your case acceptence by 3X with members. Download the book Now!

What is BoomCloud™?

BoomCloud is a software platform that allows you to create, manage & grow your own membership program. Build unlimited plans, track recurring revenue, active members metrics. Integrate your online membership enrollment with your website & start growing recurring revenue. Schedule a demo!

Fire The PPOs With These Proven Strategies!

Discover how to break free from the grip of PPOs and transform your practice into a thriving, profitable business. Imagine better cash flow, higher profits, and stronger patient relationships. It’s not a dream – it’s a reality waiting for you.

Say goodbye to PPOs and hello to a thriving, independent dental practice. Don’t miss out – your journey to financial freedom starts here!

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Jordon Comstock

Author Bio

Jordon Comstock is the Founder & CEO of BoomCloud™, a software that allows practice, clinic & spa owners to build, manage and scale a membership program. This helps practice & clinic owners to create recurring revenue & improve loyalty via membership programs. Jordon is passionate about Music, Hawaii, Healthcare businesses like: dentistry, optometry, med spas and massage spas. Schedule a demo of BoomCloud™ and learn how membership programs can improve your business. Here are more dental books to improve your practice

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