New Bill Stops Dental Insurance Companies from Scamming Customers and Unfairly Denying them Care

SACRAMENTO, CA - A new bill moving through the California Legislature will stop dental insurance companies from scamming families by collecting premiums while making it nearly impossible for families to use their benefits. Assembly Bill 371 (AB 371) introduced by Assemblymember Matt Haney requires dental insurers to provide access to an in-network dentist near a patient’s home or workplace and bans them from forcing families to pay-out-of-pocket for care their policy is supposed to cover.

The bill comes as millions of Californians pay their monthly dental insurance bill but never get the care they are entitled to. Dental insurance providers intentionally make it difficult to use their insurance by limiting the number of dentists available in-network and delaying, denying, or barely covering the cost of dental care. Families are unable to get appointments with overcrowded local dentists or must drive, sometimes over an hour away, to find an in-network dentist. If they choose to use an out-of-network dentist as allowed in their dental plans, they have to pay thousands of dollars out of pocket and then wait — sometimes for months — to be reimbursed by their insurance. Unlike medical insurance, which, on average, covers 89% of patient costs, dental insurance often requires families to pay more than 42% out-of-pocket—even when they have coverage.

“Dental insurance companies make millions of dollars while their customers suffer pain, infections, and tooth loss. They’re playing games with our health,” said Haney. “We wouldn’t allow any other business to offer a product, and then refuse to give it to you after you pay — that’s called stealing.”

The consequences of this broken system extend beyond oral health. Every year, nearly 2 million Americans turn to emergency rooms for untreated dental pain. California also ranks 47th in the nation for children’s dental health, with low-income communities suffering the worst outcomes.

California has one of the highest numbers of licensed dentists in the country, yet patients still struggle to get an appointment because insurance networks are too limited. At the same time, dental insurers continue to limit what they pay for care while raking in record profits. Many employer-sponsored plans still cap annual benefits at just $1,000–$2,000—a limit that hasn’t changed in 50 years, despite rising costs.

AB 371 aims to fix these gaps by:

• Requiring insurers to provide in-network dentists within 15 miles and specialists within 30 miles.
• Mandating transparency in provider networks, by requiring insurers to create real, accessible networks, so patients aren’t stuck with a plan they can’t use.
• Preventing insurers from forcing patients to pay out-of-pocket for covered care—ensuring dentists get paid directly by insurance.
• Making it easier for patients to receive the services they need.

“Patients should not be penalized for choosing to see an out-of-network dentist, especially when their plan is unable to provide a robust network,” said California Dental Association President Max Martinez, DDS. “The out-of-pocket costs can be substantial for the patient, resulting in postponed care. AB 371 would close the loopholes so patients’ access to care is not harmed.”

While insurers have pushed back, arguing that expanding networks could raise costs, advocates say the real issue isn’t affordability—it’s corporate greed. Despite patient struggles, dental insurance CEOs take home millions in salaries, while provider networks shrink and reimbursement rates stagnate. Other states, including Colorado, Oregon, and Maryland, already enforce stronger dental network requirements. California, a state that leads the nation in healthcare innovation, is falling behind.

“If California families are paying for dental insurance, then they better be getting what they paid for,” said Haney. “Times are tough right now and we can’t let California families be scammed out of their hard earned money.”