CDA is making every effort to provide members with the latest information concerning Delta Dental’s apparent intention to reduce provider reimbursement rates for its Premier Plan.
CDA’s legal action against Delta took a step forward with a decision by the American Arbitration Association to select three arbitrators to hear and decide the case. The selection of an arbitration panel meant the case was able to move forward with a preliminary conference scheduled Feb. 25.
CDA’s legal action against Delta remains in the preliminary stages, with the parties awaiting appointment of an arbitrator. Delta has requested appointment of a three-arbitrator panel, which delayed the appointment process while the parties attempted to resolve the issue.
On Oct. 1, Delta Dental of California issued a formal Answer to the Demand for Arbitration. Delta asserts that it has the right to amend Participating Dentist Agreements based on language in the contracts and its notification to the Department of Managed Health Care indicating that it intends to revise the provider agreements.
The lengthy arbitration process between CDA and Delta Dental has commenced, with the parties entering into discussions about the selection of an arbitrator. Delta is expected to file a formal response to the demand for arbitration on or before Oct. 1.
CDA’s legal action challenges both Delta’s right to make certain amendments to dentists’ individual contracts and reduce Premier fees unilaterally. CDA will request that the arbitrator, once appointed, maintain the status quo until a final ruling is made in the binding arbitration.
CDA’s legal action against Delta Dental of California, filed on Aug. 14, has prompted member questions about the next steps in the process. In order to help members understand the legal action, CDA has prepared a FAQ document. CDA will continue to provide regular updates on developments in the case.
On behalf of its members, the California Dental Association — along with several individual dentist providers — has taken legal action against Delta Dental of California by filing a demand for binding arbitration in response to Delta’s notice dated Aug. 1, informing providers of changes to key provisions in their agreements.
While California providers are still waiting to hear from Delta Dental of California about expected fee reductions for its Premier Plan, Missouri dentists received a letter recently from Delta Dental of Missouri that outlined plans in that state to reduce reimbursements to providers who participate in Delta’s Premier and PPO networks. The fee reduction, which went into effect July 1, averages 7 percent. Delta Dental of California has not been forthcoming with its reasons for cutting reimbursement rates, nor has it officially informed California providers about its intentions; however, the reductions are expected to be an average of 8 to 12 percent implemented later this year.
The move to restore adult Denti-Cal benefits is one step closer to reality after the governor and state lawmakers agreed to include funding in a preliminary budget deal. The restoration of benefits, which still needs final budget approval, would begin in May 2014, with a proposed annual cost of $77 million.
CDA continues to advocate on behalf of its’ members concerning Delta Dental’s intention to cut Premier Plan provider reimbursement rates an expected average of 8 to 12 percent later this year. The following letter from CDA President Lindsey Robinson, DDS, explains to members that Delta has a responsibility and an obligation to communicate with its providers when inquiries are made, not limited to the legally required 45-day contract policy notice period, and failure to do so can result in providers filing complaints. The letter is as follows:
Since learning of Delta Dental’s decision to cut fees an expected average of 8 to 12 percent for its Premier product, CDA has pressed Delta for more specific details about the impending fee reduction. We have compiled a list to inform members about what we currently know. CDA will continue to provide information as soon as possible to keep members informed.
In a letter from CDA President Lindsey Robinson, DDS, the association is urging Delta Dental to communicate answers to providers about its impending rate reduction. Dr. Robinson’s message to members and the letter to Delta are posted here.
The March 2013 issue of the CDA Update features ways CDA Presents is valuable for new dentists. Specifically, six courses that new dentists will benefit from are highlighted. Spotlighting the key role that sterilization volunteers play at CDA Cares clinics, Diane E. Morgan-Arns, who served as the lead for sterilization at the CDA Cares Modesto and Sacramento clinics, and Eve Cuny, director of Environmental Health and Safety at the UOP, Arthur A. Dugoni School of Dentistry are interviewed.
CDA is providing members with the latest information and resources after learning that Delta Dental intends to reduce provider reimbursement rates in its Premier Plan later this year.
CDA offers resources and answers to member questions in a letter from CDA President Lindsey Robinson, DDS.
CDA has learned that Delta Dental is planning to reduce reimbursement to its Premier Providers. We are now in contact with Delta to obtain details and clarification about this decision. It is likely these reductions will average 8 to 12 percent and may vary by region and provider. The reason for the reductions is not yet clear, but it is likely to be market pressures and a resultant effort to reduce the cost of the Premier plan for employers in order to keep it viable. The reductions will not go into effect immediately, but are intended to be implemented later this year.
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