Dental insurance and dental discount plans have the same general purpose. They make dental work more affordable so patients can get regular preventative care as well as procedures like fillings, bridges and root canals. Each of these options accomplishes this in a different way. One pays for part or all of the dental work while another requires the patient to pay but provides a pre-negotiated discount. The best option for a particular person depends on his situation.
Definition
Dental insurance is an insurance policy that pays for certain procedures at a set percentage. Many plans pay most or all of the annual cleaning and exam cost to encourage proper dental care. Other work is partially covered, usually within a range of 50 to 80 percent. Sometimes coverage depends on the procedure; for example, minor work like fillings might be covered at 80 percent, while the policy only pays half for more extensive work like crowns or root canals.
A dental discount plan offers pre-negotiated discounts with participating dentists. Plan members must pay out of pocket for all their work, but they will receive the discounted rate.
Cost
Dental insurance is typically more expensive than dental discount plans. It can be purchased by individuals, but it is more commonly provided as an employee benefit along with medical insurance. Premiums typically run around $35 a month for individual coverage, according to Dentalinsurancehelper.com. Discount dental plans are more affordable and are paid for monthly or annually. Dentalinsurancehelper.com states they usually cost around $100 a year.
Features
Both dental insurance and dental discount plans make it easier to pay for dental work by reducing the out-of-pocket cost. Dental insurance does this more effectively, as reflected by the higher premiums. Dental discount plans are more affordable up front for people who cannot pay for a traditional policy. However they will pay more money out of pocket when they have the dental work done.
Limitations
Dental insurance usually has a limit of how much it will pay each year, Dentalinsurancehelp.com states. The patient will be required to pay out of pocket for any additional expenses once the limit is reached. There may also be a deductible that must be satisfied before coverage kicks in. For example, the patient may be required to pay the first $100 of a major procedure and then 50 percent of the remaining amount. Some insurance plans require patients to use certain dentists in order to get the highest level of coverage.
Dental discount plans are not limited. The discount will apply to whatever services the patient receives as long as they are done by a participating provider.
Time Frame
If your employer offers dental insurance as a benefit, you will have it whether you use it or not. If you do not have coverage and know that you are going to need extensive dental work soon, MSN Money explains that you can sign up for a dental discount plan prior to getting the work. There are no exclusions for pre-existing conditions with a discount plan as there might be with traditional insurance.
Warning
MSN Money warns that you must choose a dental discount plan carefully because there are some unscrupulous companies in the business. The National Association of Dental Plans recommends asking any discount dental plan company whether it is licensed in your state and to ask for a written plan description before you purchase it. Look up the company on the Better Business Bureau website (see Resources) to make sure it doesn't have excessive complaints.
