Increasing costs in dental health care has caused a great demand for dental insurance. It is very important to know about the dental plans available and which one is most suitable for your family and budget. There are different types of coverages that come with various claims, fees, levels, and reimbursement processes. The two most common types of dental insurance are managed care and indemnity plans.
Health Maintenance Organization, Preferred Provider Organization, Point of Service and Direct Reimbursement are considered managed care plans and are the most popular in the dental care community today. The PPO dental plan has become known as the most affordable and flexible because it gives you the ability to choose your own provider. Even though there is a network of dental care provider in which to choose, your choice does not have to be from the network. However, your range of coverage is wider when you choose a dentist from the provider network.
HMO Dental Insurance serves as an alternate plan to the PPO plans. This type of dental insurance is a popular choice among most patients and works basically the same as the PPO plan. The only difference is that your dentist must be chosen from the network of dental providers.
The dental plan most like the PPO plan is the Point of Service (POS) plan. You have the freedom to choose your dentist and you save money by doing so. The difference is that your dental care provider must be chosen upon enrollment in the program. You will have to adhere to certain provisions should you decide to change dentists based upon your POS contract.
Mostly employers of large companies enjoy the benefits of Direct Reimbursement Plans due to the costs involved. Employed patients must choose both a dentist and treatment plan from the network, pay in full for their treatment and then present their receipt to be reimbursed. For employers, this method eliminates paperwork and deductibles, however, there is no limit on the amount of reimbursements.
Indemnity Plans are not only flexible, but many patients consider them the ideal choice. It requires a monthly membership fee, and as a member you are reimbursed for the cost of your dental treatments. At the time of your treatment you will pay your full expenses, process your reimbursement claim, then get your expenditures reimbursed. There is a fee schedule that will determine your reimbursement amount and you are free to choose your dentist without any rules.