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Committee approves audit of state dental benefits procurement after agency testimony
Summary
The committee approved an audit of CalHR’s dental benefits procurement and contract compliance, prompted by complaints about in‑network access and a decades‑old $2,000 annual maximum on some plans; CalHR officials said network access is strong and that the state will add MetLife as a second carrier in 2027.
Senator Cortese’s request for an audit of the Department of Human Resources’ dental benefits procurement and contract compliance won committee approval after testimony from CalHR officials and consumer advocates.
Cortese told the committee that the state has contracted with Delta Dental since 1984 and raised concerns that the $2,000 annual maximum for certain plans has not kept pace with rising dental costs, leaving some retirees to pay thousands out of pocket. He asked the State Auditor to review procurement processes, how CalHR determines benefit maximums and how the agency enforces contract performance.
Eric Dowdy of the California Dental Association and Ted Toppin of California State Retirees testified in support, describing provider participation challenges and retirees’ out‑of‑pocket spending. "Why is my dentist leaving Delta? Why can't I find a dentist in network?" Toppin asked.
CalHR Director Monica Erickson and Nicole Griffith, chief of benefits, said the program covers over 600,000 members, reported that 99% of members have a Delta provider within 10 miles, and that Delta lost 454 providers in 2025 but added 1,603 new providers. CalHR said it ran an RFP in 2025 and will offer two carriers (Delta Dental and MetLife) and eight total plan options effective Jan. 1, 2027, with contractual performance guarantees.
Committee members acknowledged member complaints and user‑experience problems and voted to approve audit request 2026‑107. The State Auditor will examine vendor selection, benefit maximums, network access trends, oversight and plans for renegotiation.
The audit should provide the Legislature with data on enrollment, out‑of‑pocket costs, provider network adequacy and whether CalHR’s procurement decisions produce competitive pricing and sufficient access for employees and retirees.
