Smile Direct Club Holds Delta Dental Entities Accountable for Depriving Millions of its Insureds Affordable Dental Treatment

Rhea-AI Summary

SmileDirectClub (Nasdaq: SDC) has filed lawsuits against Delta Dental Plans Association and its affiliates for allegedly denying coverage for teledentistry benefits. This move highlights a significant issue for many consumers, as 60% of Americans lack adequate healthcare access and traditional orthodontic care is often unaffordable. The company claims that Delta Dental's refusal to cover clear aligner therapy violates their own policies, while other major insurers support such coverage. The lawsuit emphasizes the importance of expanding access to dental care through telehealth, particularly during the ongoing pandemic.

Positive

• Filed lawsuits against Delta Dental, potentially increasing consumer awareness and support.
• Highlights significant consumer demand for teledentistry amid the pandemic, showing growth potential.
• Support from multiple major insurers indicates a trend favoring telehealth solutions.

Negative

• Delta Dental is the only major insurer refusing coverage for clear aligner therapy, which may limit SDC's market reach.
• The legal battle may lead to extended uncertainty for consumers and investors.

NASHVILLE, Tenn., June 30, 2020 (GLOBE NEWSWIRE) -- SmileDirectClub, Inc. (Nasdaq: SDC), the first direct-to-consumer telehealth platform for teeth straightening, announced today it has filed lawsuits against Delta Dental Plans Association and Delta Dental of Illinois Foundation and Delta Dental of California. SmileDirectClub’s claims calls out the bad faith motivation by Delta Dental and their breach of responsibilities as an insurer to millions. With 60% of Americans not having access to health care and only 1% of the population being able to afford and access traditional orthodontic care, the importance of insurance providers not discriminating against a platform that expands access to care is paramount.

The claims allege that the Delta Dental entities have denied their customers teledentistry benefits allowed under their policies by systematically refusing to cover clear aligner therapy as prescribed by SmileDirectClub Affiliated Dentists using the SDC Teledentistry Platform.

“On behalf of consumers we filed this complaint to hold this insurer accountable for misleading its customers and for limiting their access to approved, affordable and effective dental care,” said Susan Greenspon Rammelt, Chief Legal Officer, EVP Business Affairs, SmileDirectClub. “While other major insurers and legislatures are taking steps to give consumers choice and access to telehealth; more important today than ever before, Delta Dental continues to deny claims from consumers who have paid for insurance coverage. Their actions are entirely contradictory to the growing need and demand for telehealth, especially amid a global pandemic where millions have relied upon remote, digital care.”

SmileDirectClub’s lawsuit filings detail Delta Dental’s scheme to preserve profits by depriving its insureds of affordable dental treatment, placing their bottom lines over the best interests of their insured and in contravention of the language of their own policies; which require coverage. Notably, Delta Dental is the only major insurance provider in the US refusing to provide this coverage for its insureds. Clear aligner therapy through SmileDirectClub’s teledentistry platform is covered by Aetna, UnitedHealthcare, Cigna, Anthem Blue Cross, Anthem Blue Cross and Blue Shield, and Empire BlueCross and BlueShield.

Greenspon Rammelt continued: “Teledentistry has taken on an even greater significance and has become even more widely accepted in the wake of the Coronavirus pandemic. It enhances access to healthcare while reducing the need for face-to-face interaction that could spread disease. To deny claims tied to treatment through teledentistry is not only wrongfully punishing the consumer, it is in direct opposition to the social distancing practices essential to mitigating overall health risks for the good of everyone.”

About SmileDirectClub
SmileDirectClub, Inc. (Nasdaq: SDC) (“SmileDirectClub”) is an oral care company and creator of the first direct-to-consumer medtech platform for teeth straightening, now also offered directly via dentist and orthodontists’ offices. Through our cutting-edge teledentistry technology and vertically integrated model, we are revolutionizing the oral care industry, from clear aligner therapy to our affordable, premium oral care product line. SmileDirectClub’s mission is to democratize access to a smile each and every person loves by making it affordable and convenient for everyone. SmileDirectClub is headquartered in Nashville, Tennessee and operates in the U.S., Canada, Australia, New Zealand, United Kingdom, Ireland, Germany and Hong Kong. For more information, please visit SmileDirectClub.com.

Contact:
SmileDirectClub Media Relations: Press@SmileDirectClub.com

FAQ

What lawsuits has SmileDirectClub filed against Delta Dental?

SmileDirectClub has filed lawsuits against Delta Dental Plans Association and its affiliates, claiming bad faith and breach of responsibilities regarding teledentistry benefits.

Why is SmileDirectClub suing Delta Dental?

The lawsuit alleges that Delta Dental denies its customers teledentistry benefits, restricting their access to clear aligner therapy.

What is the significance of teledentistry according to SmileDirectClub?

Teledentistry is crucial for increasing access to dental care, especially during the COVID-19 pandemic, and is supported by other major insurers.

How does this lawsuit affect SmileDirectClub's business?

The lawsuit aims to hold Delta Dental accountable and could enhance consumer awareness of SmileDirectClub's telehealth offerings.

What is the current market position of SmileDirectClub (SDC)?

SmileDirectClub is working to expand its presence in the oral care market through teledentistry, despite challenges from certain insurance providers.