There is a considerable difference between traditional dental insurance plans and discount dental plans. Dental insurance is typically only available to individuals and families who receive their dental insurance coverage through large groups or their employers. Many employers are cutting back the benefits they provide and many people need another alternative.
So how does a discount dental plan differ from a traditional dental insurance plan? Discount dental plans negotiate a discounted rate for typical services such as dental exams, fillings, and cleanings with the participating dentists. Dentists agree to provide services for discount rates, which are usually presented prior to purchasing the reduced fee plan. These plans are ideal for individuals and families who do not get dental insurance coverage through their employer.
Discount dental plans allow savings to be obtained through the provider networks in the range of 10 percent to 60 percent. One drawback can be the limitation of only being able to visit a participating dentist. Although traditional dental insurance includes similar limitations. Another option for many individuals and families is the traditional group dental plan which provides the freedom of a traditional plan, plus the cost savings of a network. Members select a dentist or specialist, and typically experience lower out-of-pocket costs.
However, a new generation of plans known as "hybrid dental plans" have gained popularity. Hybrid dental plans combine the advantages of a discount dental plan with the flexibility of an insured PPO dental plan. Discounts are extended to members in the same dental PPO network for treatment, at negotiated fees, when insured benefits have been exhausted or are not covered.
With this unique plan, insured fees for major dental services, offered through the discount dental plan, are significantly reduced without drastically increasing the member's out-of-pocket costs. Hybrid plans typically allow insurers to offer dental with no plan maximums and this encourages members to complete their treatment plans. These plans also provide discounts for services typically not covered by insured PPO dental plans such as adult orthodontia, dental bonding and veneers.
