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Reports from CDA members during the last week on contract change notification letters sent by Delta Dental of California raise additional concerns for CDA about the proposed changes. Here is a summary of actions CDA is taking and the steps that CDA urges members to take now:
As CDA shared in an email to members last week, Delta Dental of California sent a notice to its participating Premier and PPO providers of upcoming changes to its provider agreements, including fee changes that will be effective Jan. 1, 2023. Based on member reports in the initial days following receipt of the contract change notification letters, it now appears that Delta Dental may have been less than forthcoming about the actual impact of the changes it announced, particularly about adjustments to PPO provider contracts.
As Delta Dental is required to do by our prior litigation settlement, Delta Dental gave CDA short advance notice of these changes. CDA immediately followed up with Delta Dental executives, asking them for information about the actual impact of the changes and the methodology behind them. In those communications, Delta Dental provided little detail and represented that the information is “confidential and proprietary.” However, they did say the impact of the changes on PPO providers in particular would be “positive” and that PPO providers would be especially “pleased.” Delta Dental also advised that decreases to the specialist fee reductions would be less than those it announced in 2020 and then rescinded last year.
We were hopeful these representations by Delta Dental were accurate, as it has been reported — and Delta Dental acknowledged — that PPO fees have not been increased in many years while the cost of providing dental care has increased significantly over those years.
Following Delta Dental’s notification on Sept. 1, CDA relayed what we had learned to our members. We included what Delta Dental had shared about the impact without endorsement of Delta Dental’s actions. The communication also highlighted CDA resources and tools to assist members with evaluating how these changes may impact them, their practices and patients. The communication also emphasized that CDA continues to evaluate whether any legal or legislative action would be appropriate on behalf of our members based on the announced changes.
Based on member reports in the initial days following receipt of the contract change notification letters, it now appears that Delta Dental may have been less than forthcoming about the actual impact of the changes it announced, particularly about adjustments to PPO provider contracts. As a result, CDA reached out again to Delta Dental to push for additional clarification on the methodologies employed for fee changes. Representatives from Delta Dental maintain that general dentists in the PPO network received an aggregate increase and that decreases to the specialist fee reductions were less than those announced in 2020.
Specifically, we have heard from members that on many of the frequently used codes, contracted PPO providers will experience fee decreases in January or increases that could reasonably be considered rounding errors. Dentists have also reported contracts including more burdensome administrative requirements and restrictions that would detract from patient care and reduce the value of the patient’s benefit plan. These reports from members raise great concern for CDA regarding the true impact of the Delta Dental changes.
CDA will continue to push Delta Dental executives for additional clarification and facts on members’ behalf. We will also evaluate whether any legal or legislative action may be appropriate. Transparency and accuracy are fundamental to CDA, and we will share significant information that we learn unless constrained by law from doing so.
While Delta Dental will always claim that the methodology behind its changes is “proprietary,” what matters more is the actual impact on each provider. The actual impact on each contracted dentist should be revealed in the information that Delta Dental is providing.
For obvious reasons, each dentist needs to review this information right away to assess how these changes affect your practice and your patients. Delta Dental representatives are requesting that participating providers contact their provider concierge department to discuss the impact of the fees on an individual basis. Please reach out to Delta Dental of California Provider Concierge team at 888.742.4099 or via email to discuss the impact to your practice and raise any questions or concerns you may have with the communication you received about the upcoming 2023 changes.
In addition to contacting Delta Dental, we encourage you to share your feedback, either positive or negative, with CDA on the proposed changes as they apply to your practice by using the dental benefits issue form online or emailing your comments to CDA Practice Support.
All dentists must make their own independent, individual decision about the course of action most appropriate for their practice in light of Delta Dental’s announcement. CDA offers several valuable resources to help with this analysis:
We look forward to your feedback and will continue to work with you to do whatever possible to help you succeed in your practice.