Dental insurance helps you pay for your family's oral care needs. These policies provide coverage for preventive and restorative services such as regular dental cleaning, fillings, and other dental services as needed. However, choosing the right option for your family can be challenging due to the wide range of dental plans available. Indemnity dental insurance (also called traditional dental insurance) is one option you might consider. Let's have a look on the advantages and disadvantages of this type of dental insurance.
What Are The Advantages Of Dental Indemnity Insurance?
As the American Dental Association (ADA) notes, the greatest advantage of dental indemnity plans is that you can choose to see any dentist you want instead of being limited to in-network dentists. This may be a major point of sale for people who already have a dentist and would like to continue this relationship. This may not be a concern for people who do not already have a dentist or would consider to see another.
An indemnity plan also allows members to select their dental specialists for covered treatments such as endodontists specializing in root canals, and prosthodontists specializing in dentures, crowns, and other restorations.
And How About The Disadvantages?
While the cost of dental insurance varies based on location and coverage level, the National Dental Plans Association (NADP) explains that compensation plans tend to be more expensive than HMO or PPO plans. This is one reason why indemnity dental plans are not as common as they once were.
For each dental procedure, insurers offering indemnity plans usually have a maximum allowance to be paid for . This allowance is based on what the insurance considers to be a "UCR," which stands for a "usual, customary and reasonable fee." This means you will be responsible for paying the difference if the fees of your chosen dentist are higher than the UCR of your insurer.
It's advisable for you to check if there is an annual maximum for the proposed indemnity plan. An annual maximum is the maximum amount during the year that the insurer will pay for dental care. Once you reach this maximum, you have to pay out-of-pocket for additional dental costs. HMO plans, on the other hand, seldom have annual maximums, which in some scenarios could make them more cost-effective.
Dental insurance helps you pay to keep your family healthy for routine cleaning and dental procedures. Consider the needs of your family and your budget before diving in any dental insurance plans.