02/23/2015

CDA continues legal challenge against Delta


In a Superior Court hearing scheduled for late March in San Francisco, CDA will counter motions made by Delta Dental regarding CDA’s legal action filed last year. During the hearing, which was postponed from January, a judge is expected to hear arguments on two Delta motions — one to dismiss the case and the other challenging CDA’s standing as an association to represent the interests of its members in court.

The Superior Court hearing is separate from the arbitration scheduled for June, in which a panel of arbitrators has already denied a Delta motion to dismiss the case. The arbitrators found that there is sufficient evidence to allow individual dentists to proceed with claims that Delta’s attempt to change key provisions of its participating dentist agreements violated the legal doctrine of “good faith and fair dealing.” 

In 2013, CDA learned informally that Delta was planning to reduce reimbursements for its Premier providers by 8 to 12 percent. CDA and several individual dentists filed a legal action against Delta challenging the attempt to change provider agreements. Arbitrators ruled that CDA cannot be a party in the arbitration because the contracts are between individual dentists and Delta. In response, CDA filed the separate legal action in Superior Court to ensure that we can continue to protect members in this matter.

CDA believes Delta must be transparent in its processes, submit comprehensive data to justify any actions or changes in its contracts with providers and give reasonable notice so dentists have adequate time to make any necessary changes in their practices.

CDA is here to support members with sophisticated practice management and dental benefit guidance through CDA’s Practice Support at 800.232.7645 or cda.org/practicesupport.

CDA will continue to keep members informed about the legal action against Delta.



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