Our non-profit status supports our service to our communities. We understand your services may have been disrupted due to the COVID-19 pandemic. But in a blow to the insurer, the company also agreed to relinquish its state tax exemption after an audit criticized the insurer for holding more than $4 billion in assets and failing to provide affordable insurance to the public. The Strive Non-Profit Dental Clinic is Surrey’s only non-profit dental clinic run soley by professional dentists. “Delta Dental of Arizona started the Delta Dental of Arizona Foundation (DDAZF) with the mission to improve oral health across the state, particularly for […] Board chairs received in the range of $172,000 to $223,000. Advocates agree while arguing the department does have the authority to insist that it comply with its obligations as a nonprofit. When it comes to nonprofit insurers, “the DMHC is the only one who has standing to go to court,” Johnson said. They argued that the nonprofit insurer has benefited from tax breaks for decades and that surplus revenue earned from consumer premiums should be spent on the public good. Consumer advocates are calling on state regulators to scrutinize the deal, arguing that the proposed acquisition is just the latest questionable move by a nonprofit insurer whose corporate practices may be out of step with its tax-exempt status. Board compensation has also drawn scrutiny, with members receiving from $46,000 to $203,000 in 2016 for one to two hours of work each week, according to tax filings. Washington Dental Services, part of Delta Dental, operates as a non-profit organization. As the nation’s leading provider of dental insurance, our core purpose is the advancement of the oral health of our customers, partners and consumers through dental insurance and the philanthropic efforts of Delta Dental companies. Delta Dental of Iowa Foundation has awarded 128 Iowa nonprofits, covering assistance programs in all 99 counties, a combined total of $500,000 in grants to provide for Iowans during this time of need. Rewind to 1997. The Winters Express was not involved in the creation of this story. Therefore, we are guided by a ‘pay for performance’ philosophy and employ many governance tools to ensure that executive pay is appropriate.”—Ruth McCambridge. Kaiser Health News and California Healthline are non-profit news services covering health issues. Delta Dental is Non-Profit As a non-profit dental benefits organization, Delta Dental believes in more than the bottom line. “Titanic” ruled the box office; Hanson had everyone singing MMMBop; and Delta Dental of Arizona launched one of the most impactful non-profit oral health organizations in the state. They point out that the company paid its chief executive, Tony Barth, $14.3 million in 2016, two years before he was fired for having a secret relationship with a subordinate. Delta Dental earned $5.9 billion in revenue in 2016, one of several statistics that advocates say doesn’t jive with the company’s nonprofit status. If you're a Non-profit located in Kentucky, you may apply for a grant from the Delta Dental of Kentucky Foundation. About Delta Dental of Arkansas. “It’s the kind of level that, if the IRS … had the resources to review cases for compensation, they might actually follow up on that.”. We assist in pairing patients with participating dentists who volunteer their chair-time The Delta Dental of Kentucky Foundation has developed a COVID-19 Emergency Fund to help Kentucky non-profits with immediate needs during these challenging times. Unlike for-profit companies, we do not have shareholders, and we're governed by IRS rules that place strict limitations on how we operate and how we use our income and assets. 3. Nonprofits can take a variety of forms, but in order to qualify for an income tax exemption they must generally provide a community benefit. Delta Dental of California, in a written statement to Kaiser Health News, said its investment in Moda Health will increase access to dental care and treatments, and that it uses consultants and board oversight to ensure that executive pay is appropriate. Before we delve into this newswire, it is worth restating that the lack of access to high quality, affordable, and timely dental care is a problem in poor communities all across this nation, affecting the overall health and well-being of children and families. Have a question about coverage or looking for dental insurance? The company declined to disclose its executive pay for 2017 or 2018. That means offering cost-effective, evidence-based dental plans designed to meet our customers' needs. In the 1980s, Congress rescinded federal income tax-exempt status from Blue Cross Blue Shield health plans across the nation after determining that they weren’t behaving any differently than for-profit insurers. The Delta Dental Community Care Foundation has given grants to more than 250 organizations, totaling $11 million to provide relief amid the COVID-19 pandemic. Compensation for board members is not the norm in the nonprofit world, Owens said, though that doesn’t mean it’s inappropriate, particularly for a company as large as Delta Dental. Delta Dental has told the state regulator that even though it is a nonprofit, its assets are not subject to charitable trust obligations. We are using cookies to give you the best experience on our website. It claims two things: providing “exceptional dental benefits service” and making charitable contributions. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement. DELTA DENTAL OF CALIFORNIA. Going back to the issue of compensation, the company has declined to disclose its executive pay for 2017 or 2018. Connect with your Delta Dental to learn more. California Healthline / Kaiser Health News. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. As the state’s dental benefits leader and a non-profit organization, Delta Dental of Missouri is proud to support oral health in our communities through large grants, charitable donations, sponsorships, educational programs and our toothbrush donation program. This is not the first time that the implications of paying board members at health insurers has come up; see here for the Massachusetts Attorney General’s reaction, which resulted in a cessation of the practice in that state. It has 56 million patients in its network, about one-third of all dental patients in the country. And when the tax code for nonprofit insurers was rewritten in the 1980s, it allowed nonprofit dental insurers to keep their federal income tax exemption. Delta Dental of California defends its pay structure with the standard comeback, “We need to attract top executive talent to provide best-in-class service to our enrollees/members. This is good context to remember as we mull over the fact that Delta Dental of California, which operates as an insurer in 16 states and the District of Columbia, is facing mounting criticism for paying exorbitant compensation to its CEO, executive staff, and board members, devoting a pittance of its revenue to charitable work even as it receives the benefits of nonprofit tax status. The Morning Yells bring music to shout about to The Palms on Friday, Feb. 1, I’ll take earthquakes over hurricanes anytime, Antsy McClain & The Trailer Park Troubadours will party at The Palms, Greater Sacramento region eligible to exit state stay-at-home order on Friday, Winters police make attempted-murder arrest, A bouquet of photos for the sunflower photograph contest, Greater Sacramento region to remain under stay-at-home order. Dental insurance giant Delta Dental of California is facing mounting criticism for paying its CEO exorbitantly, flying board members and their companions to Barbados for … Cost estimates are specific to geographic areas, as defined by the first three digits of a ZIP code (e.g., the geo ZIP for 12345 is 123). NON-PROFIT PRACTICE. You can spend many frustrating and fruitless hours sifting through the vast amount of information without finding what you need. WDS had a net income of $13.7 million in 2010, and paid no taxes on that. This story was produced by Kaiser Health News, a non-profit news service covering health issues. Part of what’s being debated now is to whom Delta Dental is responsible and what its money must be spent on. This National Dental Hygiene Month, Delta Dental Plans Association applauds Americans for continuing to make their oral health care a priority as they navigate the COVID-19 pandemic. Therefore, we are guided by a ‘pay for performance’ philosophy and employ many governance tools to ensure that executive pay is appropriate.”. “They just appear to be about nothing more than feathering the nests of their own managers,” said Michael Johnson, a former executive with Blue Shield of California turned whistleblower who has drawn attention to what he describes as the transgressions of nonprofit insurers. EIN: 36-2612058; Nonprofit Tax Code Designation: 501(c)(4) Defined as: Civic leagues, social welfare organizations and local associations of employees, created to promote community welfare for charitable, educational or recreational purposes. Accept Decline ... please consult your dentist or your Delta Dental. If you disable this cookie, we will not be able to save your preferences. This website uses cookies so that we can provide you with the best user experience possible. “I can’t imagine a more flagrant abuse or dereliction of their duty as a nonprofit.”. Please enter your username or email address to reset your password. As a not - for-profit company, Delta Dental is committed to improving the oral health of Arkansans through the Connect with your Delta Dental to learn more. At about 50 cents per customer, that charitable work also represents a small fraction of what the company is spending on the purchase, advocates are quick to point out. Delta Dental of Minnesota is an independent, nonprofit oral health service plan that helps ensure access to affordable dental care. Delta Dental Plans Association is a not-for-profit organization. If you're a Non-profit located in Kentucky, you may apply for a grant from the Delta Dental of Kentucky Foundation. Non-profit organizations, educational programming and at-risk/under-served populations. DMHC has said it doesn’t have the authority to change a dental health plan’s nonprofit status. Delta Dental of South Dakota is a nonprofit organization with the mission to promote and advance oral health in South Dakota. Such stuff is not rare in the nonprofit wing of the insurance industry. Critics have drawn attention to high executive pay at Delta Dental plans in other states as well, including those in Washington, Michigan and Missouri. Health, Racial Disparities, and Economic Justice. Dental insurance has historically drawn less scrutiny than medical insurance and is less strictly regulated. While health insurers were required by the Affordable Care Act to spend 80 or 85 percent of premiums on care, dental insurers have no such federal requirement. In the U.S. health system, nonprofit hospitals and insurers often meet that requirement by offering free or discounted services or performing charity work. Through our national network of Delta Dental companies, we offer dental coverage in all 50 states, Puerto Rico and other U.S. territories. The deal will be discussed at a public meeting on Jan. 30 in Sacramento. Complicating the issue of nonprofitness is the fact that Delta Dental is a mutual-benefit corporation, meaning it answers to, and is established to benefit its rate-paying members, but in its founding documents, it committed to “assist the people of California.”. Last year, the 39 non-profit Delta Dental groups across America combined for $15.2 billion in revenue. In an email to Kaiser Health News, Rachel Arrezola, a DMHC spokeswoman, said the department has yet to find evidence that Delta Dental’s assets are subject to charitable spending requirements, but said the review of the purchase is ongoing. DELTA DENTAL OF ILLINOIS NAPERVILLE, IL 60563-8677 | Tax-exempt since May 1968. Ruth is Editor in Chief of the Nonprofit Quarterly. Delta Dental is the nation's biggest provider of dental insurance. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beyond the issue of this particular sale, tax-exempt nonprofits must also spend corporate assets carefully. The national network of Delta Dental companies protects more smiles than any other insurance company. Dental insurance giant Delta Dental of California is facing mounting criticism for paying its CEO exorbitantly, flying board members and their companions to Barbados for a meeting and spending a small fraction of its revenue on charitable work — all while receiving significant state and federal tax breaks because of its nonprofit status. EIN: 94-1461312. But perhaps equally as distressing is the compensation paid to board members, which ranged from $46,000 to $203,000 in 2016 for one to two hours of work a week. The national network of Delta Dental companies protects more smiles than any other insurance company. They point out that the company paid its chief executive, Tony Barth, $14.3 million in 2016, two years before he was fired for having a secret relationship with a subordinate. Delta Dental of California defended its pay structure, saying, “We need to attract top executive talent to provide best-in-class service to our enrollees/members. Since 2011, the Foundation has awarded more than $60 million across 15 states and the District of Columbia. This means that every time you visit this website you will need to enable or disable cookies again. The California Department of Managed Health Care (DMHC), which is the entity most likely to have standing in court on this matter, cannot alter Delta’s nonprofit status, but could prevent the purchase if it decides that the money being used for the purchase won’t benefit the public or even those who pay high rates. The company earned $5.9 billion in revenue that year. Have a question about coverage or looking for dental insurance? The next nine highest-paid Delta executives earned more than $1 million each that year, bringing the total compensation for the top 10 to more than $30 million in 2016, according to the insurer’s latest available tax filing. Copyright © 2019 McNaughton Newspapers, Inc. Have a question about coverage or looking for dental insurance? The company told Kaiser Health News that its overall mission is to improve dental health and access to care, and that it had spent nearly $16 million around the country last year via the Delta Dental Community Care Foundation — just one way it says it upholds its nonprofit social welfare obligations. Anna Maria Barry-Jester is a senior correspondent for Kaiser Health News. Each year, we grant about $475,000 to organizations and programs that work to improve oral health for all Minnesotans. “That’s a very healthy number,” said Marcus Owens, former director of the arm of the Internal Revenue Service responsible for overseeing nonprofits, and currently a partner of the law firm Loeb & Loeb. The state ruled on the side of another nonprofit insurer, Blue Shield of California, when it was the subject of a similar debate in 2015. And travel for companions and staff to an annual meeting on the Caribbean island of Barbados is part of that compensation for some board members, according to tax filings from Delta Dental of Pennsylvania, an affiliate of Delta Dental of California. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Non-Profit and Charitable Dental Organizations Researching and evaluating what can be an overwhelming slew of dental coverage and assistance options can be a seemingly insurmountable task. As the state’s dental benefits leader and a non-profit organization, Delta Dental of Missouri is proud to support oral health in our communities through large grants, charitable donations, sponsorships, educational programs and our toothbrush donation program. Board chairs received substantially more that year, in the range of $172,000 to $223,000. In December, Consumer Reports, California Pan-Ethnic Health Network, Health Access and the Western Center on Law & Poverty penned a letter to California regulators asking them to assess whether it’s appropriate for Delta Dental to be investing in a for-profit insurer. The data is based on actual, non-discounted charges that providers have billed. The corporation’s bylaws say board members shouldn’t receive any salary, but can be compensated for the time and expense of preparing for and attending board meetings. The nonprofit in its 2017 annual report claims that is motivated by a vision to “increase access to dental care for those who can’t afford it.” But as it plans to spend $155 million to acquire a 49.5 percent stake in for-profit health insurance provider Moda Health, consumer advocates are calling foul. These unrestricted grants were intended to help the Foundation’s nonprofit partners continue to provide vital services to the most vulnerable members of their communities. It is an editorially independent program of the Kaiser Family Foundation, which is not affiliated with Kaiser Permanente. Delta Dental of Arkansas is a part of Delta Dental Plans Association. SAN FRANCISCO, CA 94105-2907 | Tax-exempt since Nov. 1961. As it happens, that case also involved an errant overpaid former executive who received a golden parachute amounting to $11.3 million. Combined, they are an editorially independent operation of the Kaiser Family Foundation, which is not affiliated with Kaiser Permanente. not rare in the nonprofit wing of the insurance industry, NRA’s LaPierre Faces IRS Investigation for Criminal Tax Fraud, Nothing Beside Remains: The NRA’s Ozymandias Moment, Finding Executive Leadership when Risk of Failure Is High, Florida’s Nonprofit “Carr Crash” Keeps Burning, Eschewing the Philanthropic Route, Dan Price Wants Wage Justice, A Financial Physics Problem Makes a DC Nonprofit Implode, What’s in the Relief Bill Congress May Pass Today, The Nonprofit Racial Leadership Gap: Flipping the Lens. It’s a mutual-benefit corporation, meaning it answers to its members, not the broader public. Are You Getting the Most for your Technology Dollar? The national network of Delta Dental companies protects more smiles than any other insurance company. Connect with your Delta Dental to learn more. “We kind of have to ask whether they may have been overcharging on premiums,” said Dena Mendelsohn, a lawyer with Consumer Reports. So what public good does Delta Dental do as a tax-exempt nonprofit? The California Department of Managed Health Care (DMHC), tasked with reviewing the transaction, could impose terms on the insurer, or even prevent the purchase of Oregon-based Moda Health if it determines that the money is supposed to be used to benefit the public. We believe in being part of our community. Delta Dental of Arkansas is the largest dental benefits provider in the state, helping more than 800,000 Arkansans keep their smiles healthy through commercial and Medicaid coverage. Delta Dental funding provides access to $2.25M in oral health care for U.S. Veterans in 2020.Learn more. As a member of the Delta Dental of North Carolina family, you are supporting our local efforts to improve oral health every day. But in its founding documents, it promised to “assist the people of California.”. It's a massive organization. Powerful Interests Seek to Make Puerto Rico the Hong Kong of the... Moving Beyond the Privilege of White Tears. This is good context to remember as we mull over the fact that Delta Dental of California, which operates as an insurer in 16 states and the District of Columbia, is facing mounting criticism for paying exorbitant compensation to its CEO, executive staff, and board members, devoting a pittance of its revenue to charitable work even as it receives the benefits of nonprofit tax status. The bulk of the nearly 300 applications received were for programs addressing food security or vital health services for children and vulnerable populations. By Anna Maria Barry-Jester Its mission is to help ensure that everyone in North Carolina has access to a range of quality, affordable plans in the interest of improving oral health. The Delta Dental Foundation is the philanthropic arm of Delta Dental of North Carolina and … Charitable Smiles is a Non-Profit, 501(c)(3) Approved Dental Charity, helping people who can't afford dental treatment get the care they need. If you're a Non-profit located in Kentucky, you may apply for a grant from the Delta Dental of Kentucky Foundation. The Delta Dental Foundation offers in-kind materials such as oral health brochures and other educational materials as well as toothbrushes, floss, toothpaste and more to qualifying organizations and programs. For years, Delta Dental of California’s CEOs have earned millions of dollars, including the $14.3 million in 2016. Now, the company — which has 36.5 million enrollees in 15 states and the District of Columbia — is hoping to pay $155 million to acquire a 49.5 percent stake in for-profit medical and dental insurer Moda Health. The next nine highest-paid Delta executives earned more than $1 million each that year, bringing the total compensation for the top 10 to more than $30 million in 2016, according to the insurer’s latest available tax filing. The Delta Dental Community Care Foundation partners with local communities to increase access to care, support dental education and fund research that advances the oral health field. Of course, they are a non-profit in name only, and for one reason: to avoid paying taxes. Through its Community Grants Program, Delta Dental of Illinois Foundation, the 501 (c) (3) charitable arm of Delta Dental of Illinois, awarded more than $175,000 to 19 nonprofit and community organizations with programs and … Nonprofit insurers have raised eyebrows in the past. Delta Dental of North Carolina is a non-profit dental service corporation created in 1970 to provide dental benefit plans throughout the state. Our range of giving is $2,000 to $50,000. PARSIPPANY — The Delta Dental of New Jersey Foundation awarded nearly $1 million this year to 34 non-profit organizations based in New Jersey and Connecticut, enabling them to increase access, provide education or expand the dental health care they currently provide to children, developmentally disabled persons and senior citizens, as well as to support various community events … Delta Dental of Illinois Foundation. Dental insurance giant Delta Dental of California is facing mounting criticism for paying its CEO exorbitantly, flying board members and their companions to Barbados for a meeting and spending a small fraction of its revenue on charitable work — all while receiving significant state and federal tax breaks because of its nonprofit status. 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