The California Dental Association filed legal action against Delta Dental alleging that fiduciary duties have been violated.
The California Dental Association (CDA) has filed a legal action against Delta Dental of California, alleging that the board of directors of Delta Dental violated fiduciary duties by failing to conduct appropriate analysis of the need for and impact of the contract changes to Delta Dental’s provider network and patients.
Delta Dental adjusted Premier and PPO provider agreements effective on January 1, 2023, including fee reductions for many providers, increased administrative burdens, and diminished value or benefit plans according to a press release from CDA. CDA claims transparency is part of what motivated this filing, according to CDA President John Blake, DDS.
“CDA is committed to supporting our members in their practices and ensuring the patients we serve can access dental care,” Dr Blake said in the press release. “As a dental benefit plan company, Delta Dental has a responsibility to be transparent about such significant changes that affect its provider networks and their patients. CDA believes that Delta Dental failed to adequately consider the basis for and impact of these changes and has failed to offer sufficient justification for these actions.”
This comes after CDA previously asked Delta Dental for transparency on methodologies for its contractual amendments and reimbursement charges. Delta Dental stated that that was confidential and proprietary information. CDA claims that the changes Delta Dental are making are only designed to increase its profits without keeping network dentists and patients in mind.
“This litigation is a step toward increasing transparency and accountability,” Dr Blake said. “Significant work must be done to develop quality, standardized, and meaningful dental benefit plan requirements that meet the oral health care needs of Californians.”