The cost of dental care has increased significantly in recent years. Altogether, the cost of treatment for dental work may vary. These range from three hundred dollars ($300) a year for simple dental hygiene visits to twenty-five thousand dollars ($25,000) or more for cosmetic procedures or restorative dental procedures. It is a sad thing that many people do not know how to choose a dental insurance plan. It is quite common to see people choosing policies they do not require, but end up paying even more. It is wiser when you know what you are paying for. You need to have in mind that you must only pay for something that you need.
Choosing the best dental insurance plan for you and your family is not an easy task because you not only have many choices but also understanding how dental insurance works is somewhat difficult since it varies from traditional health insurance. Make sure you check in with an insurance agency near you and have them help you choose the best plan for your needs. In case you need dental coverage, the descriptions below on the different types of dental insurance will help you to understand your options better.
- Indemnity Plans: This insurance plan allows the policyholder to select their own dentist. These plans are commonly known as fee-for-service plans. More often than not, these plans have some limits but they offer co-payment options. This actually means that you can pay a flat fee every time you visit the dentist (the co-payment), but you have an annual limit on the coverage for dental spending. There may be specific coverage limits that apply to discrete dental procedures. Meaning that, while cleanings are covered entirely, having wisdom teeth removed surgically may result in paying more. This is the most expensive kind of dental insurance since it offers the insured with the best coverage and has many options.
- Self-Insurance plans: These plans are quite similar to the indemnity plans. Typically, the main difference is that, unlike the indemnity plans, self-insurance plans do not allow the policyholder to select their own dentist.
- Closed-Panel Plans: This particular plan is quite restrictive as compared to the two types mentioned above. It actually limits the policyholders to a specific group of dentists and facilities for treatment.
- Capitation plans: This plan allocates specific dentists for precise within a specific time limit. In this case, the dentists themselves signed a contract with an insurance company. The contract guarantees them that a fee will be paid regardless of whether dental treatment was necessary for the people that came into the office or not. The cost of this type of dental plan targets emergency and preventative care. It also varies from one patient to another following the initial examination.
- Dental Health Maintenance Organization (DHMO): This plan is the least expensive of all other types of dental insurance, but it has so many restrictions. First, you can only choose a primary care provider from a select set of participating dentists. This plan is perfect for maintenance or routine procedures. Many are the times that there is a cap on how much is covered for dental work and expensive treatments can be prohibited.
- Preferred Provider Organization (PPO): This insurance plan limits the individuals to a group of dentists who offer dental care at a reduced cost to any covered individuals. For people on this plan, there is a lower agreed-upon rate for service. This type of dental coverage requires one to pay higher premiums as compared to the DHMO plan since it comes with better coverage and more options. Expensive and complex procedures are covered in this plan.
- Direct Reimbursement Plans: This type of dental coverage allows an employer to compensate employees for any dental care performed. It plan is more of a flex plan (Commonly offered by employers where employees are allowed to set aside a specific amount of their salary for dental treatment). This plan is run by the employer and not a dental insurance company.
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