09/18/2014

CDA legal action against Delta: Next steps


In an effort to keep members informed about the legal action against Delta Dental, CDA is providing an update on the next steps. Hearings have been scheduled in the coming months related to the case pending before arbitrators and a separate action filed in Superior Court.

In the arbitration, a hearing has been scheduled for next June, after an arbitration panel denied a motion by Delta to dismiss the case. A panel of three arbitrators found that there is sufficient evidence to allow the 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 a separate legal action filed by CDA in San Francisco Superior Court, a hearing is scheduled for January regarding two motions that have been filed in the case. Delta has filed a motion to dismiss the case as well as a motion challenging CDA’s association standing.

In early 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 a 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 plans and provide reasonable notice so dentists have adequate time to make any necessary changes in their practices.

For more information on the legal action against Delta, visit cda.org/deltafeecut (available through Quick Links and the News & Events menu).



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