FOR IMMEDIATE RELEASE                                          AT
FRIDAY, JULY 19, 1996                              (202) 616-2771
                                               TDD (202) 514-1888

                                 
                 NOTE TO:  HEALTH CARE REPORTERS


      MAGISTRATE JUDGE RECOMMENDS DENIAL OF DELTA DENTAL OF
         RHODE ISLAND'S MOTION TO DISMISS ANTITRUST CASE


     WASHINGTON, D.C. -- U.S. Magistrate Judge Robert W.
Lovegreen has recommended denial of Delta Dental of Rhode
Island's motion to dismiss the Department of Justice's antitrust
case involving a contract provision known in the health care
industry as a "most favored nation clause."

     In his report and recommendation, Magistrate Judge Lovegreen
found that the government's complaint, challenging Delta's use of
a most favored nation clause, states a claim under the antitrust
laws.  

     The Department's antitrust complaint, which was filed on
February 29, 1996, alleges that the most favored nation clause
has discouraged dentists from offering discounts to patients
covered by other insurance companies and to uninsured patients
who need dental care, resulting in higher prices for dental 
services and dental insurance in Rhode Island.

     The case, U.S. v. Delta Dental of Rhode Island, is pending
before Senior Judge Raymond J. Pettine of the U.S. District Court
for the District of Rhode Island, who will preside over any
further proceeding on the motion.
                               ###
96-353