Dental insurance |
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Welcome to Dental insurance,
subject Dental Insurance Programs
Indemnity Plans
Preferred Provider Plans
HMO Plans
Discount Plans
Dental Indemnity Insurance
These are the traditional fee-for-service insurance plans. You pay a monthly premium to an insurance company and in return it covers a portion of your dental expenses. Some typical features of these plans:
- High deductibles before coverage begins (well-designed plans don't apply the deductible to preventive services)
Probationary periods on certain procedures that last up to a year
Annual dollar limit on benefits
Freedom to choose your own dentist
Your average monthly cost: $40+ per person
Companies selling these plans are regulated by state insurance departments.
In general, an indemnity plan will pay 100 percent of the costs for preventive services, 80 percent for common restorative services, and 50 percent for major treatments, such as crowns and orthodontics.
Dental Preferred Provider Organizations
Another true insurance plan, a PPO falls somewhere between an indemnity plan and a dental HMO. A group of dentists agrees to provide services at a deeply discounted rate, giving you substantial savings - as long as you stay in their network. Unlike the more restrictive DHMO, though, you can go out of network and still receive some benefits. Some typical features of these plans:
- Monthly premiums
Annual dollar cap
You must stay within the approved network of dentists or pay higher deductibles and co-payments
Your average monthly cost: $40
Companies selling these plans are regulated by state insurance departments.
HMO Dental Insurance
These insurance plans, also known as 'capitation plans,' operate like their medical HMO cousins. Some typical features of these plans:
- Monthly premiums (some require you to prepay a year's worth)
Co-payments for office visits
Free preventive or routine care
You must select from an approved network of dentists
May have an initial enrollment fee
Annual dollar cap
Your average monthly cost: $20 to $40
Companies selling these plans are regulated by state insurance departments.
Dental Discount Plans
Discount dental plans are a lot like coupon books where you get a percentage off when you shop at participating merchants. With a dental plan, you don't actually get coupons, but you must go to a dentist who has agreed to participate in the plan and offer services at a discounted rate - $450 for a crown instead of the standard rate of $750, for instance. For individuals and families discount plans seem to represent the best value.
Some typical features of these plans:
- Monthly fee to the dental-discount company
You must stay within the plan network
An initial enrollment fee
Your average monthly cost: $10 to $20
It's important to keep in mind that a discount dental plan is not the same thing as an insurance policy. You are purchasing access to dentist who have agreed to reduced rates for their services and therefore you must use dentist within the network.
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