insured business in 2010 compared to 2009. New fully-insured business typically has a higher loss ratio than fully-insured business that has been with us for more than one year. The fully-insured dental segment represents approximately 69% of our total dental business.
Our self-insured dental membership decreased by approximately 8,900 members in 2010. This decrease is primarily due to one large self-insured employer group with approximately 7,500 members that converted from self-insured DHMO to fully-insured DHMO effective January 1, 2010. In addition, employer groups that did not renew with the Company and reduced employee counts of retained employer groups resulted in a decrease of approximately 1,400 members.
The fully-insured dental PPO healthcare services expense increased by $3,285,000, or 129.4%, to $5,824,000 in 2009 from $2,539,000 in 2008. Approximately $2,620,000 of this increase is attributable to the 103.2% increase in fully-insured dental PPO member months in 2009 compared to 2008. Approximately $665,000 of this increase is attributable to an increase in fully-insured dental PPO healthcare services expense on a per member per month basis of approximately 12.9% in 2009.
to the length of time and the extent to which the fair value has been less than cost, our intent to sell for a period of time sufficient to allow for any anticipated recovery in value, and general market conditions. Our impairment policy for fixed-maturity securities states that other-than-temporary impairment is considered to have occurred (1) if the Company intends to sell the impaired fixed maturity security; (2) if it is more likely than not the Company will be required to sell the fixed maturity security before recovery of its amortized cost basis; or (3) the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. As of December 31, 2010, there were no other-than-temporary impairments. In the event there was an unrealized loss on an investment that we believed to be other-than-temporary, that loss would be reported in the consolidated statement of operations, instead of in a separate caption of shareholders’ equity. The Company maintains its cash in bank deposit accounts, which at times exceed federally insured limits. The Company has not experienced any losses in such accounts.
We have audited the accompanying consolidated balance sheets of DCP Holding Company and subsidiaries (the “Company”) as of December 31, 2010 and 2009, and the related consolidated statements of operations, shareholders’ equity and redeemable shares, and cash flows for each of the three years in the period ended December 31, 2010. Our audits also included the financial statement schedules included in Item 15(a)2. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.
common shares are considered to be redeemable common shares due to the fact that the shareholders have the option to require the Company to repurchase these shares upon their death, permanent disability or retirement. The Company records Class A and Class B common shares as Redeemable Common Shares in the consolidated balance sheets outside of shareholders’ equity at the redemption value of the common shares. Accordingly, the Company records any net income (loss) or other comprehensive income (loss) as a change to the redemption value of the Redeemable Common Shares to accrete (dilute) the carrying value of the Redeemable Common Shares to the redemption value at the end of each reporting period. Under this method, the end of the reporting period is treated as if it were also the redemption date for the security.
The Company incurred claim costs related to dental care providers amounting to approximately $63,142,000, $58,305,000, and $53,590,000 for the years ended December 31, 2010, 2009 and 2008, respectively. These costs include approximately $41,207,000 $42,152,000 and $41,666,000 of claims incurred by participating providers who are also holders of redeemable common shares in 2010, 2009 and 2008, respectively. In 2008, the Company’s incurred claim costs also included provider withhold return of $464,000.
Investments classified at December 31, 2010 and 2009, as fixed maturities and short-term investments were as follows:
Unrealized losses on investments are generally due to higher current market yields relative to the yields of the investments at their amortized cost. Unrealized losses due to credit risk associated with the underlying collateral of the investments, if any, are not material. All investments with unrealized losses are reviewed quarterly to determine if any impairment is other than temporary, requiring a write-down to fair market value. The Company considers the percentage loss on a security, duration of loss, duration of the investment, credit rating of the security, as well as payment performance and the Company’s intent or requirement to sell the investment before recovery when determining whether any impairment is other than temporary. The Company had no other than temporary impairment charges for the year ended December 31, 2010 and 2009. The Company had no investments in a continuous unrealized loss position for greater than one year as of December 31, 2010 and 2009.
GAAP differs in certain respects from the accounting practices prescribed or permitted by state insurance regulatory authorities (“statutory-basis”), a non-GAAP basis of accounting. The statutory-basis net (loss) income for Dental Care Plus was approximately $(94,000), $(374,600) and $641,000 for the years ended December 31, 2010, 2009 and 2008, respectively. Statutory-basis net worth was approximately $5,515,000 and $4,921,000 at December 31, 2010 and 2009, respectively.
Certain assets and liabilities are measured at fair value on a non-recurring basis. These include long-lived assets such as certain plant, property and equipment items, intangible assets and goodwill, as well as assets measured at cost that are written down to fair value during a period as a result of an impairment. For the year ended December 31, 2010 and 2009, there were no assets or liabilities that were required to be measured at fair value on a non-recurring basis.