Having the best dental plan for your needs can mean the difference between an expensive or affordable trip to the dentist. Dental plans can become confusing when deductibles, co-payments and waiting periods are staring you in the face. However, dental plans are not as complicated as they seem.
How it Works
You may have a dental plan offered through your employer, or you may purchase a dental plan on an individual basis. Whichever the case, most plans work in similar ways: You pay a premium set by the insurance company and they provide the benefits described in your policy.
Types
There are three types of dental plans to choose from: traditional dental insurance that has a deductible, co-payments and yearly maximums; prepaid dental plans that require a dentist to accept the terms of the plan and you pay set co-payment per procedure; and dental discount cards that provide a discount on services rendered by a participating dentist.
Features
As of 2010, dental insurance plans usually have a deductible from $25 to $100 per calendar year before the plan starts to pay. Most plans pay fully for two annual cleanings, and cover basic services such as filings or simple extractions at 80 percent, and major work such as a root canal or crowns at 50 percent. Most plans have a 6-month waiting period for basic services and a 12-month waiting period for major services. Plans offered through an employer usually do not have waiting periods. There may be a yearly maximum of $500 to $2,000. Once the plan has paid out this amount, it will not pay for any additional services for that calendar year. PPO plans have in-network and out-of-network benefits. In-network dentists are contracted and charge a cheaper rate. There are also indemnity plans that allow you to see any dentist.
Prepaid Dental
Prepaid dental is not an insurance plan, but it is usually marketed and owned by a dental insurance company. Prepaid dental insurance has no waiting periods, no deductibles and no annual limits. You must select a participating dentist because it has no out-of-network benefits. You pay a fixed amount for each service a dentist renders. The insurance company does not pay any claims on your behalf. This plan is usually cheaper than dental insurance, but has a small network of participating dentists.
Discount Plans
Discount plans are the most affordable dental plans, and are usually paid on a yearly basis -- they may be as low as $80 per year. A dentist must be a participating provider in order for you receive the discount. The expected savings is given at the time of service, and usually ranges from 15 to 50 percent for a procedure or service. Discount plans usually have a smaller network of dentists. If you live far from a metropolitan city, it may not be to your advantage.
Considerations
If you need major dental work immediately and do not have access to an employer's plan, then a discount plan or prepaid dental plan may be the best option. If you can wait and want something to cover all major services, then regular dental insurance is the most comprehensive plan for your needs. Prepaid dental and discount dental plans work well if you do not need major work immediately and live in an area where a dentist participates.
References
- Blue Cross Blue Shield: Individual Dental Insurance Policy
- Delta Dental: Individual Dental Insurance Plans
- Ehealthinsurance: What's the difference between Dental insurance and Discount Cards with dental discounts?
- Humana One Dental: Careington International Care POS Dental Plan
- Dental Plans: Compare Dental Insurance & Discount Dental Plans
- Vital Savings: Your Savings Word of Mouth
