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December 2024

DMPO licensure: Why you can't just DIY a dental membership plan

Learn why partnering with a licensed provider like Subscribili makes managing membership plans easier, from compliance to renewals.

Hope Slowik
Hope Slowik

Content Writer

DMPO licensure: Why you can't just DIY a dental membership plan

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Over the last 4 years in business, we’ve worked with lots of dental practices. And if there is one thing we have learned in that time: the entrepreneurial spirit in the dental industry runs strong. From sole proprietors up to DSOs: the people running these practices tend to be self-starters. 

As such, the impulse to take a DIY approach to creating a dental membership plan seems natural. You have the relationships with the patients, you dispense the care you need, you are billing them for that care. Why introduce another party into the equation? 

The short answer here is: compliance. 

What is a DMPO

Any arrangement with a patient where you charge a membership fee in exchange for care is legally considered a Discount Medical Plan, or DMP. And anyone operating such a plan, even just a single-chair office with a handful of patients, is considered a Discount Medical Plan Operator, or DMPO–requiring a special license to offer the service to your patients. 

Securing a DMPO license is tricky

Thirty-five states have rules for Discount Medical Plans, and in 25 of them, Discount Medical Plan Operators (DMPOs) need to get a license or registration from state departments before they can start operating. On top of that, states also have insurance and surety requirements. It’s a good idea to have an administrator handle these tasks to make sure everything stays compliant and secure. 

And, if your practice operates in multiple states, you will need to maintain for licensure within each–renewing and reapplying at different intervals depending on the states where you maintain a presence.

This can create a massive administrative burden for practices looking to create their own membership plans–and all these hurdles are before you have even offered the option to a single patient.

Subscribili is already licensed to operate plans across the US

Instead of starting from scratch and creating a membership plan yourself, Subscribili is already equipped to help you get started. We’re DMPO licensed across the US, so your process is immediately smoother than if you tried to navigate on your own.

Beyond the initial licensure, many states also require sureties, bonds, and various insurance policies, including cyber-liability and crime coverage. These requirements help protect patient’s data and ultimately benefit everyone industry-wide, but can create a massive financial hurdle for practices getting started. With Subscribili, you don’t have to sweat it: we hold surety bonds across 20 states, totaling over $1 million in coverage. 

And the perks of choosing an established dental subscription plan service go beyond the initial licensure. With Subscribili, you also streamline: 

  • Patient data security: We’re SOC 2 certified, so you don’t have to sweat security compliance
  • Marketing your plan to patients: We provide a custom-branded marketing pack, giving you a shortcut to reaching your patients
  • Supporting member patients with personalized benefit portals to ensure they are maximizing utilization
  • Managing membership renewals and billing: Patient payments are run through the Subscribili platform, so your front desk is never chasing down payments
  • And more! 

So, why put your practice through the administrative ringer when getting started–and keeping your practice’s subscription plan humming–can be so simple? Subscribili can get your practice running in as little as 2 weeks.

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The Subscribili Subscription Plans are not insurance, but a licensed treatment savings subscription plan offered through our offices. Subscribers in good standing with their annual subscription fee are eligible to receive transparent, subscriber-only discounts from the normal retail fees that participating offices typically charge self-pay patients for treatment. Plan details and subscriber savings are exclusive to participating offices and may vary by location. Subscribili does not make payments directly to care providers for services rendered to plan subscribers. Subscribers are obligated to pay for all care services, but will receive a discount on services rendered by participating care providers. The plan is not a qualified health plan under the Affordable Health Act. The plan does not meet the minimum creditable coverage requirements under MGLC.111M and 956 CMR 5.00. Discount Medical Plan Organization (“DMPO”) and plan administrator: Subscribili Inc. 5900 Balcones Drive, Suite 100, Austin, TX 78731.

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