What is Dental Insurance?
Dental insurance, or dental plan, helps many people plan and budget for dental care. Unlike the basic health care, dental insurance is optional. It is available as part of medical insurance plans or as a standalone policy. The insurance partially pays the costs of preventive dental care, as well as of treatment for minor, and some major dental problems.
Why do You Need Dental Insurance?
Dental issues can occur at any time, due to either lack of care for your teeth or a disease or accident that you’ve experienced. As dental fees are not included in your medical insurance, in some cases, they can easily go beyond your affordability. This is why coverage of dental insurance is key. It is crucial in saving your money in major dental care as it can significantly lift the financial burden on you. In addition, people with this insurance have been found to be more likely to get preventative care and seek medical attention for dental conditions. Those without the insurance are prone to wait until they cannot bear with the pain anymore, which could lead to more health problems and more expensive care.
Types of Dental Insurance
There are a variety of dental plans available. Below are 3 most common types of dental insurance.
- Dental Preferred Provider Organization (PPO) Plan
This dental plan uses a network of contracted dentists who provide specified services for set fees under contract. The services covered depend on the provisions of the contract. With a PPO plan, you probably have to pay higher out-of-pocket expenses if you see a dentist out of the network.
- Indemnity Dental Insurance Plan
Under this type of plan, an insurance company pays the dentist a percentage of the charges based on the procedures performed. Generally, this kind of plan allows you to select your own dentist, but in some cases, it is combined with a PPO.
- Dental Health Maintenance Organization (DHMO)/ Capitation Plan
In this type of plan, dentists are pre-paid a set fee per month for each patient assigned to the dentist. Therefore, no matter you see the dentist or not, your dentist is always paid to offer covered dental services. And you can receive the covered services at no costs or a reduced cost. But other services need a co-payment from you. Make sure it’s a contracted office so that you can get a benefit.
Before you choose any plan, you should learn more about the differences between various plans and decide carefully which one is best for you. In this way, the insurance can help you protect your dental health in a cost-effective way.