Dental Plans
There is a great deal of similarity between health insurance and dental insurance when it comes to the major plan categories. There are 4 major categories of health insurance and there are 4 basic categories of dental insurance. Major dental insurance plans include:
- Dental HMOs
- Indemnity Plans
- Preferred Provider Organizations
- Dental Discount Plans
Dental HMOs - Dental Health Maintenance Organizations (Sometimes referred to as capitation plans) operate very much like their health insurance counterparts. Dental HMO policyholders pay a monthly premium and are required to stay within a relatively small network of dentists. Policyholders must pay co-payments during office visits, but can receive free routine care such as check-ups as a part of their coverage. Costs vary from provider to provider, but to give you an idea, a standard dental HMO plan could cost you on average between $6 and $20 per month.
Indemnity Plans - As with health insurance indemnity plans, dental indemnity plans allow policyholders to visit the licensed dentist of their choosing. Policyholders pay a monthly premium for a litany of covered services, and their insurance company, in turn, reimburses the dentist from whom they receive care. Also like their health insurance counterparts, dental indemnity plans are the most expensive in terms of premiums and co-payments. Policyholders believe the higher cost to be well worth the extra degree of flexibility. The average monthly costs of indemnity plans are approximately $19 - $25 per month.
Preferred Provider Organizations - Dental PPO plans do not require you to see a dentist within the network, however they award you by offering substantial monthly savings should you choose to stay within said network. (The network is much larger than that of a dental HMO plan) Because of the plan's makeup, a dental PPO plan can be said to be more or less a combination of an HMO and an Indemnity plan in that it has a highly flexible network. Dental PPO plans tend to have an average monthly cost ranging from about $15 - $20 per month.
Discount Dental Plans - Discount dental plans are generally the most affordable types of dental plans available. Technically, they are not really considered as a form of insurance because they are not regulated in any way by insurance institutions. This plan provides coverage for approximately 70% of costs associated with your basic dental services, such as cleanings and checkups. You should be fully aware of all aspects of the company and the plan before signing up for a discount dental plan. These plans tend to have a low monthly average cost that ranges from about $5 - $10.
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