Dental HMOs

These insurance plans, also known as "capitation plans," operate like their medical HMO cousins. This type of dental plan provides a comprehensive dental care to enrolled patients through designated provider office (dentist). A Dental Health Maintenance Organization (DHMO) is a common example of a capitation plan. The dentist is paid on a per capita (per person) basis rather than for actual treatment provided. Participating dentists receive a fixes monthly fee based on the number of patients assigned to the office. In addition to premiums, client co-payments may be required for each visit. Some typical features of these plans:

• Monthly premiums (some require you to prepay a year's worth)

• Co-payments for office visits

• Free preventive or routine care

• You must select from an approved network of dentists

• May have an initial enrollment fee

• Annual dollar cap

• Your average monthly cost: $5 to $15

• Companies selling these plans are regulated by state insurance departments.

Preferred Provider Organizations

Another true insurance plan, a Preferred provider organizations ( PPO) falls somewhere between an indemnity plan and a dental HMO. This plan allows a particular group of patients to receive dental care from a defined panel of dentists. The participating dentist agrees to charge less than usual fees to this specific patient base, providing savings for the plan purchaser. If the patient chooses to see a dentist who is not designated as a "preferred provider," that patient may be required to pay a greater share of the fee-for-service.  A group of dentists agrees to provide services at a deeply discounted rate, giving you substantial savings — as long as you stay in their network. Unlike the more restrictive DHMO, though, you can go out of network and still receive some benefits. Some typical features of these plans:

• Monthly premiums

• Annual dollar cap

• You must stay within the approved network of dentists or pay higher deductibles and co-payments

• Your average monthly cost: $20-25

• Companies selling these plans are regulated by state insurance departments.

Dental Discount

This type of dental plan is not insurance. The managing organizations have negotiated with local dental offices to establish a set price for a particular dental procedure and offer deep discounts (some up to 70%) off the regular ADA pricing code. This plan has several advantages over traditional dental insurance plans, namely, there are no exclusions for pre-existing conditions. This allows a patient to receive immediate coverage for work without meeting any waiting period requirements.

Direct Reimbursement Plans

A dental care plan now coming into vogue is the direct reimbursement plan. This is a self-funded benefit plan — not insurance — in which an employer pays for dental care with its own funds, rather than paying premiums to an insurance company or third-party administrator. You, the patient, pay the full amount directly to the dentist, then get a receipt detailing services rendered and the cost, which you show to your employer. The employer reimburses you for part or all of the dental costs, depending on your specific benefits.

Your company might reimburse 100 percent of your first $100 of dental expenses and then 80 percent of the next $500, and 50 percent of the next $2,000, with a total annual maximum benefit of $1,500. Or it might reimburse only 50 percent of your first $1,000, resulting in a $500 yearly cap.
Some typical features of a direct reimbursement plan:

Some typical features of a direct reimbursement plan:

• Neither you nor your employer pay monthly premiums

• Freedom to choose any dentist

• Typical employer cost: depends on the number of employees and

• benefit caps

• Benefits usually capped at $500 to $2,000 annually.

Dental Insurance Disclosure