While DentaQuest limits its Medicaid network in Texas and threatens to boot over 100 providers from its network in urban areas, yesterday, its Canadian parent company, Sun Life Financial Inc., crowed about its share price reaching an all-time high, boosted by the financial performance of its U.S. dental operations, which is mainly DentaQuest.
Record share price
According to Bloomberg, “Sun Life Financial Inc.’s shares enjoyed a short-lived all-time high after fee-income gains in the Canadian insurer’s US segment helped third-quarter profit beat estimates. Shares of Sun Life gained by as much as 4.3% early Tuesday, lifting the company’s stock price to C$80.82 shortly after the market opened in Toronto. That was the highest price since shares began trading in March 2000.”
Sun Life CEO Kevin Strain told media, “You’re seeing that business starting to return to profitability at a small profit this quarter. We’re signaling in the US $100 million in profits next year.”
Bloomberg added, “Strain added it will take time to bring the business back to the company’s expectations, but that the pricing is going according to plan.”
Medicaid dentists are against the wall
It appears that Medicaid dentists in Texas and other states are bearing the weight of making Sun Life’s financial projections as DentaQuest tightens its service policies to increase profitability. This is threatening provider practices and the mission of Medicaid—providing access to essential dental care for children in need.
This is on top of staffing shortages and inflated supply prices that Medicaid providers have to cope with, so something has to give.
As a Medicaid dentist recently commented, “It feels like we’re being squeezed from all sides—reimbursements go down, restrictions go up, and patients suffer the most.”
This sentiment resonates with many providers not only in Texas but in other states as well. Look at the actions taken against DentaQuest in Louisiana and Massachusetts.
Legislative investigation needed
We sincerely hope legislators will investigate the situation in Texas in the upcoming legislative session.