Dentist Concerned Over State Insurance Company Purchasing Dental Practice

Tuesday, July 29th, 2025 -- 1:01 PM

(Corrinne Hess, Wisconsin Public Radio) Dentists across the country are raising questions after one of Wisconsin’s largest dental insurance companies purchased a Madison-based dental practice with more than 30 locations. 

According to Corrinne Hess with Wisconsin Public Radio, Delta Dental of Wisconsin acquired Cherry Tree Dental about three weeks ago. Now dentists are saying the transaction blurs the line between provider and insurer.

“When an insurance company becomes both health care provider and insurance payer, questions arise regarding potential conflict of interest,” according to a statement issued by the American Dental Association.

“From a business standpoint, dental insurance companies seek to minimize cost and maximize profit,” the statement continues. “As a result, patients may find their treatment options limited to what is most cost-effective for the insurer, not necessarily what is most effective for their oral health.”

Jed Roher, chief legal officer with Delta Dental of Wisconsin, said this type of arrangement is unique in the dental industry, but there are a number of instances where general health care providers own insurance companies. Because of that, Roher said there are already established rules on how an insurance operation and provider can and can’t interact.

“One of the most important (rules) is that Cherry Tree Dental will have its own leadership team that is making its own kind of carrier contracting decisions, and they’ll be having their own reimbursement negotiations with those carriers,” Roher said. “Delta Dental of Wisconsin will have no visibility to those conversations. Equally, clinical care decisions will be made by the dentist and the patient.”

Roher said Delta Dental was interested in buying Cherry Tree Dental to ensure people have access to rural dentists. Cherry Tree Dental was started in Madison as a family-owned practice in 2006 and grew to 25 locations in Wisconsin, four in Illinois, one in Michigan and one Minnesota.

Most of the Wisconsin locations are in the central part of the state, including Wausau, Eau Claire, La Crosse and Green Bay. Mark Paget, executive director of the Wisconsin Dental Association, said the group had no advanced notice that the acquisition was happening.

He said the WDA’s 3,100 members are very concerned. Wisconsin is one of less than a dozen states that does not require dental offices to be owned by a licensed dentist.

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