The “Sample Insurance Rate Increase Letter” That Actually Makes Your Practice More Profitable (Without Losing Your Mind or Your Patients)

sample insurance rate increase letter
July 14, 2025
Topics: Dental
Written by: Lisa Rasmussen

How Smart Practice Owners Are Ditching PPOs and Adding $500K+ in Recurring Revenue

Join our exclusive course and discover the proven strategies that practices use to add $10,000+ in monthly recurring revenue with patient membership plans. Dr. Evans took this course and now has over 800 members and $37,000/mo of predictable recurring revenue. Watch this webinar before we take it down in 24 hours.

This course normally sells for $297.

But right now, I’m giving you access for just $47.

That’s cheaper than a hygiene cleaning.

And it could be the most profitable $47 you ever spend.

Get the Course Here → The Six-Figure Membership Plan Course

What You Will Learn:

- How to Build a Membership Plan That Pays You Monthly (Even While You Sleep!)

- Why PPOs Are Stealing Your Revenue—And How to Take Control of Your Profits

- The 3-Step System to Scale Recurring Revenue
(Even If You’ve Never Sold a Membership Plan Before!)

- The #1 Mistake Dentists Make When Dropping PPOs (And How to Avoid It!)

LIVE Case Study: How One Dentist Went from PPO-Dependent to $500K+/Year in Recurring Revenue With a Membership Program!

In dentistry today, PPOs are not your friend, they hurt your cash flow, demolish your profit margins, jeopardize your patient relationships & use A.I. to deny claims!!

If I had an employee or partner that messed up my business like that, I would FIRE them ASAP! 

$47. No fluff. Just results.

You in?

Get Course Now!
Get Course

“Dear Patient, Your Insurance Sucks—Here’s Why We’re Raising Rates (But You’ll Still Love Us!)”

Let’s get real for a second.
Every dentist has sweated over the dreaded insurance rate increase letter. The insurance company slashes reimbursements (again), your overhead keeps climbing, and suddenly, you have two choices:

  1. Work harder for less (uh, no thanks).

  2. Raise your rates (cue the panic).

But here’s the plot twist: The best dental practices—those with raving-fan patients and actual profits—use rate increase letters as a loyalty-building, revenue-boosting, practice-transforming moment.

If you want to crush your next “sample insurance rate increase letter,” keep reading. You’ll get a killer template, but more importantly, you’ll learn how to turn insurance headaches into a money machine (hello, membership programs and predictable monthly recurring revenue).

From Fearful Rate Hikes to Revenue Freedom

Meet Dr. Jen.
She dreaded sending a rate increase letter. “What if my patients bail? What if my Google reviews tank?”
But she was sick of being an insurance company’s doormat. So she wrote a bold, honest, and empathetic letter, then—here’s the kicker—offered patients a better way: her in-house membership plan powered by BoomCloud™.

Here’s what happened next:

  • 87% of her patients stayed (and many thanked her for the transparency)

  • 200+ joined her membership plan

  • Monthly recurring revenue (MRR) shot up to $8,000+

  • Average annual recurring revenue (ARR): $96,000 and growing

  • Her revenue per patient doubled (thanks to members spending 2-4x more than insurance patients)

  • She stopped sweating over insurance fee schedules forever

Moral of the story: The sample insurance rate increase letter isn’t the end of the world—it’s the start of a better practice.

✉️ The “Sample Insurance Rate Increase Letter” (That Won’t Make Patients Hate You)

Here’s a battle-tested, Comstock-approved sample:

Sample Insurance Rate Increase Letter

pgsql
Subject: Important Update to Our Dental Fees

Dear [Patient Name],

We truly value your trust and loyalty to [Practice Name]. We are committed to providing the highest quality dental care using the best technology, materials, and team.

As you may know, insurance companies have continued to reduce reimbursements for dental services—even as the costs of supplies, staffing, and technology have increased significantly.

To ensure we can maintain our high standards (and keep giving you the smiles you deserve), we must update our fees for certain treatments starting [Date].

**But here’s the good news:**
We’ve created an in-house membership plan designed to help our patients save money, get more value, and access preventive and emergency care without the usual insurance hassles.

**Our Membership Plan Includes:**
- 2 cleanings, exams, and all routine X-rays per year
- Emergency visits
- 15-20% off all other services
- No waiting periods, annual maximums, or denials

If you’re frustrated by rising insurance costs and confusing coverage, you’re not alone. Ask us how to join our membership program—and never stress about insurance games again.

Thank you for being part of our dental family.

With gratitude,
Dr. [Your Name] & Team

Why This Letter Works:

  • Transparent about why rates are rising (stats and real-world costs)

  • Empathetic to patient concerns (“we get it!”)

  • Proactive by offering a solution (your membership plan)

  • Keeps trust high and referrals rolling in

The Stats: Insurance vs. Membership Plans (Spoiler: Membership Wins)

  • Insurance reimbursements have declined 7–13% since 2020 (ADA HPI)

  • Dental overhead is up 15%+ due to inflation, staffing shortages, and supply costs

  • Membership patients spend 2X–4X more over their lifetime (BoomCloud™ Data)

  • Retention rates soar: 85–95% for members vs. <70% for insurance-only

  • MRR/ARR brings predictability: 100 members at $30/mo = $3,000/mo MRR = $36,000 ARR—before you even treat a cavity!

Case Study: How Dr. Patel Used a Rate Increase Letter to 4X Revenue With BoomCloud™

Dr. Patel’s insurance reimbursements dropped (again). He sent a clear, honest rate increase letter—and instead of just bracing for angry calls, he launched a BoomCloud™ membership program at the same time.

  • Year 1: 320 members joined

  • MRR: $9,600/month

  • ARR: $115,200/year

  • Membership patients booked more hygiene, more elective treatment, and referred friends

  • Bonus: Dr. Patel’s Google reviews improved, because patients loved the honesty and savings

5 Killer Tips for Writing Your “Sample Insurance Rate Increase Letter” (and Not Losing Patients)

  • Lead with empathy and data: Show that you’re on their side, not just padding your wallet

  • Explain rising costs: Staff, supplies, technology—be real!

  • Offer a better option: Your membership plan is the “Netflix” of dental care

  • Frame as an opportunity: “This helps us serve you better!”

  • Make it easy to join: Simple sign-up, clear benefits, exclusive perks

Use Rate Increases to BOOST Loyalty & Revenue

If you want to finally break free from insurance handcuffs, here’s your blueprint:

  1. Send the best sample insurance rate increase letter (customize our template)

  2. Launch or promote your in-house membership plan (BoomCloud™ is made for this)

  3. Track your MRR and ARR: Predictable cash flow = peace of mind

  4. Watch your average revenue per patient soar: Membership patients invest more, stay longer, and refer like crazy

  5. Focus on care, not claims: More smiles, fewer headaches

The Membership Math (aka How to Print Money Without Insurance Drama)

  • 200 members x $30/mo = $6,000/month MRR = $72,000/year

  • Members accept treatment 2X as often (less “I’ll wait for insurance…”)

  • Your team spends less time on the phone with insurance companies

  • You build a loyal community—not just a revolving door of “whoever has a PPO card”

Final Thoughts: Insurance Doesn’t Own Your Practice—You Do!

The “sample insurance rate increase letter” is not the end.
It’s your chance to:

  • Be honest and bold with your patients

  • Lead them to a smarter, membership-based solution

  • Grow predictable, recurring revenue (MRR/ARR)

  • Free yourself from insurance company headaches—for good

Resources & Links

Related Articles:

Dental Billing ProcessUnderstanding the Dental Billing Process: Ultimate Guide Dental Case Acceptance TrainingDental Case Acceptance Training Patient Notification Letter When Going Out of NetworkPatient Notification Letter When Going Out of Network

My Top Podcasts

How Smart Practice Owners Attract, Retain & Create Recurring Revenue

Get the book that’s helping over 65,000  practices ditch insurance, boost cash flow, and create financial freedom with a patient membership program.

Download Now!

Membership Plans For Optometrists

vision-membership-plan-ebook Creating a patient membership plan is the smartest strategy to implement in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & increase sales!

Download Now!

My Top Articles:

  1. Dental Books
  2. Marketing Tools For Chiropractors
  3. Dental Membership
  4. DSO Marketing
  5. Dental Marketing Ideas
  6. Dental Software Programs
  7. Top Dental CE Courses (Replays)
  8. Dental SEO
  9. Dental Membership Plans Guide
  10. Dental Savings Plan 101
  11. Dental Software = More Revenue
  12. Best Dental Podcast
  13. Dental Case Acceptance Training
  14. Valuation of a Dental Practice
  15. Out of Network Letter to Patient
  16. In-house Vision Plans
  17. Optometry Software
  18. Optometry Marketing
  19. Medspa Marketing Solutions
  20. Spa Membership 101
  21. In-House Dental Membership Plans
  22. Dental Clinic Marketing Goals
  23. Dental Membership Plan 101
  24. How Can I Promote My Dental Clinic
  25. How Do Dental Clinics Increase Patients?
  26. How Do Dental Clinics Attract Patients?
  27. Dental Website Design
  28. Chiropractor Marketing Strategy

Fire The PPOs!

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

Download Now!

Subscribe to Our Podcasts!

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

Calculate Your Potential

with BoomCloud™

Recurring Revenue Growth Calculator

Discover the revenue potential of your practice’s membership plans. This calculator helps you project growth by analyzing key factors like patient volume, plan pricing, and service utilization. See how implementing a custom plan can boost your bottom line.

Revenue Calculator
Try the Revenue Growth Calculator

 PPO Loss Calculator – How Much are YOU Losing?

Calculate the hidden costs of relying on traditional PPO plans. Our PPO Loss Calculator reveals the revenue you could be missing out on and helps you strategize for greater profitability with a membership-based model.

PPO Loss Calculator
Try the PPO Loss Calculator