Wednesday, February 08, 2012

Not For Profit Delta Dental Executive Pay and Perks Exposed

Extraordinary is not the word. How about excessive?

Delta Dental is the nation's biggest provider of dental insurance. It has 56 million patients in its network, about one-third of all dental patients in the country. Last year, the 39 non-profit Delta Dental groups across America combined for $15.2 billion in revenue. It's a massive organization. Since it's not-for-profit, Delta Dental doesn't pay federal or state income taxes.

Delta Dental is registered as a 501(c)(4) not-for-profit, which means it's a mission-driven organization and must give back to the community to retain it's non-profit status. Generally, according to the IRS, 501(c)(4) organizations have more lattitude than those classified as 501(c)(3), like Goodwill, which can accept tax deductable donations. Still, according to the IRS, organizations like 501(c)(4) organizations like Delta Dental must focus on the social mission, not the operation of a business.  

A 501(c)(4) says "an organization is not operated for the promotion of social welfare if its primary activity is carrying on a business with the general public in a manner similar to organizations operated for profit."

Sounds to me that Delta Dental is being run like a for profit company.

It is time for the feds and IRS to re-evaluate their tax status.

And, to think, when I was in private practice all of those dental insurance denials for my patients and crappy annual maximums.

Go figure....

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