Dental Designs in Green Bay is one of the 25+ Cherry Tree Dental locations that have been acquired by insurer Delta Dental, sparking concern among the Wisconsin dental community. PC: Fox 11 Online
(WTAQ-WLUK) — Dentists from across the state are expressing concerns after a major dental insurance company acquired a Wisconsin-based dental company with more than two dozen locations.
Cherry Tree Dental has 25 locations statewide, including in Green Bay and the Fox Valley. The company, however, has been bought by dental insurer Delta Dental.
“We remain deeply concerned about the broader implications of this arrangement,” says Mark Paget, executive director of the Wisconsin Dental Association. “For the first time, dental practices in our state will be financially tied to a dental insurer… This raises serious concerns about patient care, provider independence and the integrity of oral healthcare in Wisconsin.”
Delta Dental’s acquisition of the local dental practices is legal and does not require approval from the Wisconsin Office of the Commissioner of Insurance. However, internal restructuring of the company does require OCI approval.
That restructuring includes moving the insurance company to its own non-profit holding company. That holding company will also control another of its nonprofit holding companies, which Wyssta Insurance Company (WIC) was transferred to. WIC was purchased by Delta Dental of Wisconsin in the Cherry Tree Dental sale.
The moves are being made to satisfy Wisconsin state statute 611.71(3)(am).
“When the same corporate entity has financial stakes in both the insurance side and provider side, there’s a real risk that clinical or referral decisions could be influenced by business priorities,” Paget said during the public hearing portion of the OCI hearing.
“At what point is the OCI concerned with a monopoly?” asked Dr. Christian Marsh, who owns a dental practice in Winneconne. “Such consolidation makes it nearly impossible for other insurers to compete, especially those striving to offer fair rates and broader coverage for Wisconsin families.”
The state recommended approval of the restructuring, but OCI will not make a final approval or denial of the changes until all public comments have been received. That means the earliest a decision can be made is Oct. 10.
“I would strongly encourage all of you to please review this consolidation of power, which will reduce competition, undermine policyholder protections and ultimately limit patient choice,” said Dr. Heather Harris, a dentist in Brookfield, during the public hearing.
Most importantly, this raises ethical questions about whether we, as a state, want to support insurance corporations acting both as a payer and provider of dental services for our friends, family and fellow citizens.
Among the concerns shared by dentists is that, as Delta Dental covers a majority of Wisconsinites, the company will then encourage patients to receive care at one of the 25 Cherry Tree locations in the state. They mostly worry, however, about patient care.
“We’re concerned that patients may be steered through planned design, network restrictions or cost-sharing incentives toward affiliated practices, limiting their ability to choose their dental home,” Paget said.
“I do not see how this reorganization ensures the appropriate protections for patients, providers and purchasers,” said Monica Hebl, a dentist in the Milwaukee area, who disclosed that she was a former board member for Delta Dental Wisconsin.
“Allowing an entity to control premiums, fees, reimbursements in coverage, sets a precedent that could be damaging to the oral health of those covered by Delta and served at Cherry Tree locations. It could also have a distinct anti-competitive effect, as other insurance companies may be shut out,” Hebl continued.
Delta Dental of Wisconsin declined to respond to public hearing comments during the OCI hearing. They provided this statement:
We appreciate the expertise and attention that the Office of the Commissioner of Insurance (OCI) has devoted to its review of our Form A filing related to our internal restructuring, which is not related to our acquisition of Cherry Tree Dental. That transaction was completed at the end of June. After hearing the public comments offered to the OCI, while we understood the concerns expressed, we believe they are not germane to our Form A filing, and in any event, are speculative and do not agree with them. Out of respect for the OCI’s process and time, we chose not to address them in this forum.
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