PA Attorney General Reaches $1M Settlement With Newtown-Based Dental Co.

BUCKS COUNTY, PA — A Newtown Township-based dental company that targeted elderly patients for up-sales based on false promises they would be covered by Medicare will be required to pay $1 million in restitution and civil penalties under a settlement agreement reached with the state’s attorney general.

Attorney General Dave Sunday announced that his office has reached a settlement with Infinity Dental Management regarding the Bucks County-based dental group selling patients expensive services, based on false promises they would be covered by Medicare.

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The settlement with Infinity, which does business as Alpha Dental Excellence at 240 Middletown Boulevard in Middletown Township, involves mistreatment of many elderly patients or patients on limited incomes who were targeted for up-sales. Traditional Medicare does not cover dental services.

Alpha Dental is also alleged to have applied for, opened, and submitted third-party loan or financing applications on behalf of patients, at times without their knowledge or consent, and without providing required consumer protections (such as the ability to cancel the loan within five days without penalty).

“The patients who were misled and deceived by Alpha Dental often ended up with large loans and bills they could not afford,” Attorney General Sunday said. “Alpha Dental was fully aware that Medicare does not cover dental procedures and concealed that information while convincing patients to purchase costly procedures and services. Those predatory tactics end here – and Alpha Dental, under this settlement, will make patients whole.”

Alpha Dental will pay restitution to impacted consumers, totaling approximately $517,000. Alpha is also required to pay civil penalties of $232,983 and investigation costs of $250,000. Defendants will make monthly payments until the total payment of $1 million is satisfied.

The Office of Attorney General initiated an investigation into Alpha Dental’s business practices after receiving multiple consumer complaints. The investigation uncovered that Alpha Dental was using aggressive marketing and sales tactics, including hosting “free dinner events” in order to lure elderly consumers into purchasing expensive dental services, while misrepresenting Medicare’s coverage.

The Attorney General’s office said Alpha Dental either never submitted claims to Medicare for reimbursement, or when they did, the claims were routinely – and correctly – denied by Medicare.

The investigation further uncovered that Alpha Dental was allegedly pressuring patients who were unable to afford immediate out-of-pocket payments to enter into loans with third-party lenders. In doing so, Alpha Dental routinely violated the Credit Services Act by failing to provide the mandatory statutory disclosures and right-to-cancel notices that would protect consumers’ rights when entering into these loan agreements.

Alpha Dental even submitted some loan applications without the patients’ knowledge or consent, falsified information on applications, and assessed unlawful “cancellation fees.”

This settlement prohibits Alpha Dental and others named in the settlement agreement from doing the following, including, but not limited to:

• Using any fraudulent, deceptive, and/or misleading misrepresentations, direct, or implied, in their advertising or when communicating with patients regarding insurance coverage and/or reimbursement, financing options, payment options, and/or consumer billing.
• Misrepresenting their status, affiliation, or participation with Medicare, medical insurers, and/or dental insurers.
• Advertising or representing that services will be covered or reimbursed by dental insurance, medical insurance, and/or Medicare, when such services are not actually covered or eligible for reimbursement.
• Providing advice or assistance to consumers with regard to the obtaining of credit beyond informing consumers that such credit is optional and available from third parties.

The settlement was filed by Deputy Attorney General Randy Kim in the Bucks County Court of Common Pleas and is pending approval by the court.