California Dental Association Files New Legal Action Against Delta Dental of California

 

Here is some very interesting news.  The good people at the California Dental Association have decided to pursue legal action against Delta Dental of California.  When it comes to legal issues, I like to let people make up their own minds on things, but here is the "quick summary" on the issue that CDA has on its website.  And please take notice of the terms "nonprofit" and "tax exempt" below.

Quick Summary:

Legal action filed against Delta Dental of California challenges Delta Dental’s adjustments to Premier and PPO provider agreements that took effect Jan. 1. CDA alleges that the board of directors of Delta Dental, a nonprofit, tax-exempt company, violated its fiduciary duties by, among other things, failing to conduct appropriate analysis of the need for and impact of the contract changes to Delta Dental’s provider network and patients. CDA's FAQ and other resources can assist members now and keep them updated on the next steps.

I find it interesting that a "nonprofit" and "tax exempt" entity somehow feels the need to lower its reimbursement to providers.

For all the details from CDA, you can follow this link.  

 If you are interested in reading the actual twenty-nine page legal complaint, you can find it here in pdf format.