Why and How Low-Cost Dental Insurance Works
You should know right off the bat that discount dental plans are not the same as insurance. Be mindful, though, that the distinctions between them may become more blurred if certain states decide to treat them similarly to insurance.
Dental discount plans are what?
A discount dental plan is what its name implies. You, the client, and the providers, such as oral surgeons and dentists, can voluntarily become members of this plan or group. In most cases, you'll have to pay a fee—often on a monthly or quarterly basis—to maintain your membership in the plan. If you become a member, you'll be able to take advantage of special pricing at participating dental offices and other service providers. While the discount is generally shown as a percentage off of the provider's standard fees, some plans may include set prices for some procedures. A reputable plan should be able to provide members with a comprehensive list of procedures and discounts (or prices) along with a list of providers.
WARNING: Before committing to a discount dental plan, be sure they cover your area by checking their provider network.
The majority of savings come from reductions applied to the provider's regular fee, so it might be worthwhile to shop around for the best deal. Providers often offer services at rates that may be higher or lower than the dentist down the street. They have merely agreed to discount their "usual" charges.
For what reasons would a dentist give out discounts on dental care?
Dentists and other health care providers are small company owners, despite our desire to think of them as members of the "medical profession" bound by laudable principles and regulations. However, such professions often have some ethical or legal restrictions on how they may advertise, and advertising is the lifeblood of any small business. As a service provider for a discount medical plan, a dentist can instantly reach a larger audience of people who might not have found them otherwise. A side note on this is that if the plan member is satisfied with the services they receive, they will probably return to that provider again and again, and will also possibly recommend the dentist to friends and neighbors who are not plan members.
Under the discount dental plan, when are the costs due?
In contrast to traditional insurance, which requires members to submit claims, calculate their percentage and deductible, and then arrive at a final patient cost, most discount dental plans simply provide members with an immediate discount off the regular fee, with the remaining balance due to the dentist at the time of service. Although even a discounted dental fee can be rather substantial, there is no need to worry about waiting or the likely total cost.
THE HIDDEN VALUE OF DISCOUNTED DENTAL SERVICES.
It's obvious. Dental services are expensive. There was a time when many of us put off getting even the most basic dental care because we didn't think we could afford it. For many of us, this proved to be the wrong decision because a small problem which could have been caught and repaired early at a relatively "cheap" cost later became a big, expensive problem. For families with children, this scenario is not at all uncommon. Checkups and cleanings can be covered by most discount dental plans for a reasonable price. By preventing minor issues from becoming major ones, this will help families, especially those with multiple children, to keep their expenses down.
One additional value is that these plans are often billed month-by-month and can be entered into and dropped as needed should your health benefits position change.
NOTE: A drawback to these plans is that not all dentists are members. If you have an established relationship with one dentist, he or she might not be on the plan and you may have to begin all over with a new dentist. There may be a plethora of dental offices in some regions, but very few that accept the plan. Again a reminder - do your homework and check out the availability of providers before putting money into any plan.
IS A DISCOUNT DENTAL PLAN WORTH IT?
Indeed, that is a challenging question. Like insurance, investments, and annuities, there is no way of knowing what the future will bring. While the actual out-of-pocket cost of the plan itself is easily calculated, cost to savings evaluations cannot be made until after the fact. A discount dental plan is usually purchased with the idea that the membership costs are relatively small in relation to the amount of money which might be saved should the historically expensive services of a dentist be needed.
ARE THERE OTHER CONSIDERATIONS THAT WOULD IMPROVE THE VALUE OF A DISCOUNT DENTAL PLAN?
Some discount dental plans have bundled their plans with other services. These may be offered for additional fees, or may be included in the price of the plan itself. This may vary from plan to plan, and it would be the task of the consumer to compare the benefits of any plan before making a commitment.
