Competition in business and health care is an integral part of the U.S. economic system. According to the Federal Trade Commission, competition is encouraged in the health care industry because it helps to keep costs low, ensures quality and improves innovative pricing and technology. The FTC serves as a watchdog for consumers, protecting the public from anticompetitive practices and dishonest providers of insurance.
Function
While many employers provide health insurance for their workers, not as many automatically give workers access to dental insurance, according to the American Dental Association in comments made to the FTC regarding competition in the industry. Additionally, dental plans often have limitations on the annual amounts they pay out. Both considerations mean that more independent purchasers shop for dental insurance.
Basics
While medical insurance typically covers unexpected injuries and illnesses, dental coverage primarily offers preventive care from a single provider. According to the California Dental Association, a primary dentist who might include referrals to a limited number of specialists provides most dental services. Because most problems are preventable, dental insurance is geared toward higher payments for regular maintenance and typically require larger co-payments for treatment.
Types
Three types of dental insurance plans dominate the industry and provide the bulk of options for individual consumers, according to the California Dental Association. Self-funded plans usually are only available to employee groups, but many individuals can qualify for a cooperative group that funds dental payments. Insurance carriers usually offer a number of options that range from fee-for-service plans to managed care products that include specific providers. Dental service corporations are nonprofit organizations that provide the bulk of private dental plans. They sell policies to groups and individuals and include companies such as Blue Cross/Blue Shield and Delta Dental.
Considerations
Whether you must choose a dental plan through an employer or purchase it as an independent consumer, you need to consider certain features in a dental plan. Deductibles are payments that must be met before the insurance benefits kick in and co-payments are those costs that are associated with each dental visit. The overall premiums of the coverage should be taken into consideration based on your average level of dental needs.
Features
In addition to overall costs, features you should consider include the amount of dental work you and your family may need in the coming year. If your children need braces, look for a plan that covers orthodontics. Check-ups and X-rays may be all that's needed for an elderly couple and the costs may be less than the yearly premiums on a dental plan. Plans that cover crowns, fillings, bridges and other endodontic procedures may pay for themselves even with larger co-pays.
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