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Committee approves audit of CalHR dental benefits procurement
Summary
The committee authorized a state audit of CalHR’s dental benefits procurement after testimony from dental association and retiree representatives about provider network losses and stagnant annual maximums; CalHR said it will add MetLife in 2027 and offers network metrics.
Senator Cortese presented an audit request to evaluate the Department of Human Resources’ dental benefits procurement and contract compliance, citing that the state has contracted with Delta Dental since 1984, that some plans retain a $2,000 calendar‑year maximum, and that beneficiaries and retirees report difficulty finding in‑network dentists and paying large out‑of‑pocket costs.
Representatives from the California Dental Association and California State Retirees supported the audit, saying dentists have reported growing challenges participating in the state plan and retirees report thousands of dollars in out‑of‑pocket costs. “Why is my dentist leaving Delta? Why can't I find a dentist in network?” one witness asked.
State Auditor Parks outlined five audit objectives including CalHR’s vendor selection methodology, evaluation of acceptable annual maximums and coverage options, data review of enrollment and out‑of‑pocket expenses, contractor performance accountability, and CalHR’s plans for renegotiation.
Monica Erickson, CalHR director, and Nicole Griffith, chief of benefits, said CalHR’s dental program covers more than 600,000 employees, retirees and dependents. Erickson gave network metrics: 99% of members have access to a Delta provider within 10 miles; in 2025 Delta lost 454 providers but added 1,603 new providers; 40.2% of members reached or exceeded their maximum in 2024. CalHR also said it conducted a 2025 RFP and will offer two carriers (Delta Dental and MetLife) with several PPO and DHMO options effective Jan. 1, 2027.
The committee called the roll on audit request 2026‑107 (Department of Human Resources, Dental Benefits Procurement). Multiple members voted aye and the audit was approved.
