Dental Insurance Articles
Differences Between Indemnity And Network Dental Plans
2010-10-01
Dental insurance is extremely important for both individuals and families because the cost of dental services can be very expensive. If a person requires substantial dental work to be done, it is not always easy to afford the treatments and procedures that are required. Not many people have this much disposable income available to spend. Dental insurance helps to absorb the high cost of these expenses. There are typically two different types of dental insurance-indemnity plans and network plans. A person should know the differences between the two before obtaining dental insurance quotes.
An indemnity dental insurance plan is also referred to as a fee for service plan. With an indemnity plan, a patient may choose to seek the services of any dentist he or she wishes. This dentist may belong to an approved network or not; it will not affect the cost of service. However, the patient will be required to pay a deductible, and then the insurance company will pay a pre-determined portion of the expenses. Each provider has their own set reimbursement amounts, but the usual percentage is between 80 and 100 percent. Most plans include cleanings and regular check-ups, which are often called preventative care. Sometimes, additional services and treatments are covered or offered at a reduced rate. This plan is most beneficial for individuals who only require their yearly check-up visits and do not need extensive dental procedures to be done.
With a network dental plan, the patient can choose from a Preferred Provider Organization (PPO) or a Health Maintenance Organization (HMO). A PPO requires a person to choose a dentist from a list of approved dental professionals. There may also be a surcharge paid by the patient. An HMO works by providing the patient with a flat rate for dental care, but the choice of dentist is limited. The patient will pay an annual premium for a set amount of visits to the dentist. This type of dental insurance plan benefits families who will likely visit a dentist several times a year, especially if they have several children. Children often need expensive procedures like braces, crowns, and tooth extractions done. It is much cheaper for a family to pay a fixed annual rate rather than paying for each service provided.
In order to choose the dental plan that best fits an individual or family's financial and dental needs, these differences between indemnity plans and network plans must be carefully considered. Only then, can a person make an informed choice. If there are any questions or concerns regarding certain coverages, inclusions, or exclusions, these can be addressed while obtaining different dental insurance quotes from a variety of insurance companies.