In 2010, the state of Texas allowed dentists to collect nearly $200 million for orthodontic treatment for kids on Medicaid -- more than the rest of the U.S. combined, according to a story by WFAA-TV in Dallas/Ft. Worth.
While Texas struggles to manage its Medicaid budget, it spent $184 million on Medicaid orthodontics. Medicaid pays dentists for orthodontics by each procedure they do instead of a lump sum for the "finished mouth" of straight teeth, according to the news report.
The state of Texas does not qualitatively evaluate a dentist's orthodontic claims; it checks primarily to see if the necessary forms are submitted, and it rejects only one in seven Medicaid orthodontics claims, WFAA noted.
State records show that 34 dental operations collected more than $1 million in Medicaid orthodontics last year, according to WFAA. Just three years ago, All Smiles Dental Centers -- a chain of 51 dental clinics in Texas -- collected $5.4 million from Medicaid orthodontics. Since that time, All Smiles' Medicaid orthodontics billings nearly doubled to $10.2 million.
All Smiles was recently acquired by Equity Partners, a Chicago-based hedge fund, WFAA reported.
