Judge Issues Injunction Against Dental Plan Group
A Superior Court judge has issued an injunction against a Newport Beach-based group of dental health plans, barring it from conducting illegal business practices alleged by state investigators.
The state accused the group of advertising deceptively and fraudulently obtaining fees, among other things.
The parent company, Consumerhealth Inc., has several units, including Newport Dental Plan, Consumer Dental Network, Smiles Plus and the Braces Places. The plans have about 15 offices in Los Angeles and Orange counties.
The state Board of Dental Examiners accused Consumerhealth of enticing people who were already insured to join its plans. The plans “would then bill the patient’s insurance company for the maximum benefit amount, rather than bill at the plan’s scheduled rate,” dental board President Dr. Gloria Valde said in a statement Friday.
Because most patients’ insurance had annual benefit limits, the practice fraudulently depleted their benefits, Valde said.
The injunction is part of a settlement between the state and Consumerhealth. The company agreed to reimburse the dental board $200,000 for the cost of the probe and pay a $1,500 civil penalty.
Consumerhealth President Stephen R. Casey said the firm admitted to no wrongdoing and that the state had no credible evidence. “We settled for business reasons,” he said.
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