E-mail :

Password :

Forgot Password? | Sign up for Free

Know the Difference: Dental Insurance Vs. Dental Discount Plans

Posted by : Premraj | Posted on : Friday, April 29, 2016

dentist
SHARE THIS
FACEBOOK

Do you have a dental discount plan or a dental insurance plan? It’s not always obvious, and most people do get confused about this. If you want to know what you have, or what you should buy, then here are some facts you should know about each.

What Is Dental Insurance?

If you want an in-depth understanding of dental insurance, stay on top of resources and articles  online at mydental.GuardianLife.com/blog/.

The short version is that a dental insurance plan is a contract between you and an insurance company. You pay a monthly or annual premium. In exchange, the insurer promises certain benefits. One of those benefits is the payment of any dental-related claims.

Most people adopt a “100-80-50” plan, meaning that the insurance pays 100% of the cost of basic care, including 1 to 2 checkups per year, 80% for things like fillings and root canals and 50% for crowns, bridges, braces, and other major procedures.

Dental insurance comes with some major drawbacks, however. These include maximum benefits, waiting periods, and deductibles, copays, and paperwork. Lots of paperwork. You can also get trapped with exclusions and limitations in coverage for certain procedures.

Usually, you must wait between 6 months and 18 months for treatment beyond a basic examination. So, if you think you need emergency or immediate attention, then insurance might not be for you. When you choose a plan, you have two basic options, with most premiums running between $1,000 and $1,500 per year.

Dental insurance plans also have deductibles, copayments, and waiting periods. There are typically policy maximums that cap coverage, and coinsurance which may require you to pay for part of the covered services.

A typical deductible might be between $25 and $100 per person, per year. As long as you meet the deductible, then the plan pays benefits at whatever the coverage rates are. For example, if your cleaning costs $200, and your deductible is $100, then you will be responsible for the first $100, and the insurer will pay the remaining $100.

If you go in for another cleaning, the insurer will pay the entire bill.

Preventative care is normally covered in full, and you will usually pay a percentage of the cost of care for more serious or extensive care. For example, a basic cleaning might be covered in full under some policies, but braces might only be covered at 50%, so you will have to pay for half the cost of braces, if your children (or you) need them.

A dental indemnity plan lets you see any provider, and there are no network limitations. Indemnity plans compensate you for the use of services, but they will pay a pre-determined percentage of the usual and customary charges for such services. And, your premium is usually much higher than with a traditional dental plan.

Dental Health Maintenance Organization (HMO)

The dental HMO requires you to select a primary care dentist which will serve as your point of contact. All care must be coordinated through the dentist, and any out-of-network care is usually not covered at all.

You’ll have a set copay amount that you pay for every procedure. Dental HMOs are common for employer plans because of the coverage and premiums on group rates. If you’re buying your own individual plan, most of the options will have an annual benefit maximum that you cannot exceed, typically $1,000.

Dental Preferred Provider Organization (PPO)

A dental PPO lets you buy insurance and choose a dentist within a network that the insurance company provides for you. Most will also give you partial benefits if you travel outside of the network, meaning you have coverage even when you don’t use your primary dentist.

Dental PPO plans also have a deductible and an annual benefit maximum amount. They tend to cover a percentage of procedures, based on whether it’s preventative or basic, or major.

Dental Savings Plan

A dental savings plan isn’t insurance, but it works like insurance in some ways. Dental savings plans are like membership programs. You pay a monthly premium, which is lower than the cost of most dental insurance plans.

In exchange for the premium, you get a discount on a wide variety of dental services at participating dentists. The benefit of this arrangement is that there are no limitations, deductibles, and copays. There are no exclusions either. Dental discount plans usually involve more out of pocket expenses because there is no actual insurance covering services.

Erin Talbot spends her days assisting others as a financial advisor. She also likes to help people by sharing her financial insights online. You can read her posts mainly on financial blog sites.

Comments : Post a Comment | Category : Health Care, Personal Finance, Planning, Saving Tips | Tags :
hsas

The unstable economy of recent years has delivered a major blow on all the healthcare system, with many medical practices forced to close down their doors as a result. Cutting costs and letting go of staff is often seen as quick solution to solve any financial issues but there are more efficient ways to durably [...]

Read More >>

50th Anniver

If you’re a millennial, providing elderly care for your parents may have crossed your mind at least once. However, you may still have a career to pursue, a home to build, and the world to see. This is why a lot of people resort to hiring a caregiver or sending their parents to a nursing [...]

Read More >>

house on calc

Buying your first home can be an exciting and fulfilling process, but it can also be stressful and hectic, especially if you’re not properly prepared. The “learn as you go along” approach doesn’t work too well with home buying, as what seems to be a slight surprise or setback could wind up costing you thousands [...]

Read More >>

condos

High rise living. Being close to everything you could possibly need. No more commutes and traffic jams. These things are certainly wonderful to think about, right? No wonder people are snatching up condos in Montreal. The best Montreal condos are now occupied but you can still find a few gems if you look hard enough. [...]

Read More >>

HVAC Maintenance

Every company wants to reduce annual costs, and one of the main factors that continue to fluctuate, even for large corporations, are their energy costs per year. The costs for employee salaries and manufacturing can remain the same but the costs to power equipment, machines, lights, gas and air conditioning can fluctuate out of control. [...]

Read More >>

Small business in budget

Job satisfaction is not always a given. Usually, we go to work because we need the money, although there are some people who do genuinely love their job, and even when we hate the job, we stay until something better comes along. Some employers don’t care whether their employers are happy. They know that if [...]

Read More >>

How to Organize Your Finances During a Move

For the thrift, hiring professional movers might seem like something to be avoided. But for many people in certain situations, it’s actually the most economical decision you can make when moving. People move for all kinds of reasons, but most moves are at least somewhat related to financial needs. Whether moving to a place for [...]

Read More >>

Retirement

If you’re in a good job with a 401(k) plan and an employer who matches your contribution every month, then you may think you’ve got your retirement covered. After all, you’re already ahead of 68% of Americans, who according to a 2015 survey were not participating in any kind of employer-sponsored retirement plan at all. [...]

Read More >>

7460436094_808913575a_o

If you want to build your business or want to have online presence to reach more people then you must be interested in designing your own website. Nowadays, it is very crucial to have online presence, otherwise you will be like out of track without the online presence.  It truly helps to enrich your business [...]

Read More >>

teen driver

You just bought a car, and you’re excited about the great times that you are about to have. Whether you’ve bought an old used VW bus from the 70s or a fun-to-drive Mustang, you’ll need insurance before you are allowed on the road. Getting it isn’t as simple as it may seem at first. While [...]

Read More >>

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video