With so many different types of dental insurance and dental discount plans available today, it can be hard to keep track of which one of the two makes the most sense for you and your family. While signing up for either one means that your future dental bills will be lower, there are also a number of important differences to take into consideration before making any commitments.
Dental insurance companies-similar to health insurance companies-pay all or a portion of your dental expenses. They make payments directly to the dentist on your behalf after services are rendered. If you are insured, the only thing you owe at the completion of your exam is your co-pay (as specified by your particular plan, but usually ranging from $10-30 per visit).
To obtain dental insurance coverage, you must pay a monthly premium. The premium amount depends on the number of individuals covered, with coverage for a single person being the most affordable. Typically, a flat family rate is offered to cover both parents and any number of children. The more services a particular dental insurance plan covers, the higher the premium.
Dental insurance premiums also fluctuate depending on the particular deductible. A deductible refers to the amount the patient (or patients, with group coverage) must pay out-of-pocket before insurance will start to cover any dental expenses. For example, if you have a plan with a $100 annual deductible and a $10 co-pay, and you have $200 of dental work done, you will owe your $10 co-pay and the first $100 of the remaining bill; your dental insurance will cover the last $90.
Every dental insurance company sets its own coverage policies. Different services are covered at different levels, usually set as a percentage of the final bill. Some services may not be covered at all. For example, your insurance may cover 100% of preventative exams, 80% of fillings, and one x-ray per year, but not cover oral surgery at all. You are responsible for all costs that your insurance does not cover.
Often, the amount the insurance company will pay towards your expenses depends on whether or not the dentist who performed the procedure participates in their network. Out-of-network dentists cost more than those who are in-network.
In contrast, dental discount plans do not pay any of your dental expenses. You are responsible for the full payment amount, which is due at the end of your visit. However, belonging to one of these plans means that your total bill may be discounted by a pre-determined amount, which saves you money. Certain dental plans also include one low- or no-cost preventative exam per year.
An annual fee is required in order to join a dental discount plan. This rate increases depending on the number of individuals listed on the plan; a flat family rate is generally available to provide discounts for two parents and all of their children.
Dental discount plans have no deductible and no co-pay; your discount applies from your very first visit onwards. The amount of the discount depends on the plan you signup for, and may vary depending on which services are performed. For example, your plan may provide you with 25% off of a preventative exam, but only 10% off of an extraction.
Savings from a dental discount plan are only available with dentists who participate in your particular plan. If your dentist does not participate, you are responsible for the full cost of the visit.
Instead of choosing only one or the other, many people are electing to combine the benefits of dental insurance and a dental discount plan by subscribing to both. Whether dental insurance would or would not save more money than a discount plan depends entirely on each individual. When making such a decision for yourself, consider such factors as your current dental health, the amount you can afford to spend on premiums or annual fees, and whether or not you would be able to afford a dental emergency without certain coverage.
