Traditional Dental Insurance Vs. Discount Dental Plans-How Can You Distinguish?

Perhaps you have heard of discount dental plans. There plans are often made to sound like dental insurance plans, but they are not. Unlike traditional dental health insurance, discount plans do not pay for procedures. They do, however, provide an affordable alternative to high priced dental procedures by offering deep discounts on the necessary work.

Differences Between Discount Plans and Traditional Insurance

Discount dental plans have several differences from dental insurance plans. The main difference is in how they save the patient money. With dental discount plans, the patient pays a discounted price for dental services. With traditional dental health insurance, the health insurance pays the majority of the procedures, while not offering a discount. Usually with dental insurance, the patient is required to pay a portion of the cost of the coverage.

Who Benefits From Coverage?

Many people are not able to use traditional insurance plans. They may be self-employed, or work for a company that does not offer dental insurance in their benefits package. These people can benefit from health and dental discount plans. While not insurance coverage, they offer an affordable alternative to the high cost of insurance premiums. Those who are unable to get insurance for their dental needs are benefited by discount plans.

Cost

One of the biggest differences between the two programs is that just about anyone can have access to discount health and dental plans. While there is a cost involved, there are many affordable discount dental plans out there. The arrangement is quite similar to joining a gym or health club. You pay a yearly fee to be a part of the discount plan, and in return, the plan negotiates a more affordable price for you when you visit the dentist. The price for an individual for discount plans is usually around $100 per year. The cost, on the other hand, for insurance, can be as much as $35 per month for an individual. Not only that, but the insurance plan will most likely have yearly limits. If you are going to have to pay all or a portion of the premiums for dental insurance, a discount plan might be a more affordable option.

Drawbacks to Traditional Insurance

Traditional dental insurance has its share of drawbacks. On top of the premium amount, you most likely will only have coverage for basic dental care. If you need care that is not covered, you will pay full price out of your own pocket. Another problem you might face is high deductibles. If you do not go to the dentist often, and your deductible is quite high, you might find that you never spend enough on dental health care to cover the deductible. If this is the case, then the money you spend on the insurance is wasted, as you never get to benefit from it.

Sometimes, dentists do not accept insurance as payment for services. They require the patient to pay upfront for dental services, and it is up to the patient to seek payment from the insurance company. It is not uncommon for the insurance company to be willing to pay only an amount far less than the actual charges incurred thus creating unexpected expenses for the consumer.

Continue to: Disadvantages to Discount Dental Plans