(WLUK) — Dentists from across the state are expressing concerns after a major dental insurance company acquired a Wisconsin-based dental company with locations across the state.
Cherry Tree Dental has 25 locations across the state, 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, the 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.”
The company’s acquisition of the local dental practices is legal and does not require approval from the Wisconsin Office of the Commissioner of Insurance.
In a hearing on Thursday morning, OCI recommended the acquisition be approved.
“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 cover fair rates and broader coverage for Wisconsin families,” he adds.
“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 Brookefield, 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.”
Delta Dental of Wisconsin declined to respond to public hearing comments during the OCI hearing. FOX 11 has reached out to the company for further comment.