Dental insurance plans can be classified under various categories.
One such classification is based on the difference between a normal dental insurance plan and a discount dental plan.
A normal dental insurance plan offers a comparatively wider coverage. There are no restrictions in the choice of dental care provider. It also features a much higher maximum insurance claim amount and a much lower deductible.
A discount dental plan provides you much restricted coverage. Straitjacketed restrictions in the maximum claimable amount of insurance cover and dental care providers as also a much higher deductible amount are other features of this plan. However, it is quite simple to execute.
Another classification is based on the difference between an open panel dental plan and a closed panel dental plan.
An open panel dental plan offers much wider choice of dental care providers from a specified list.
A closed panel dental plan offers comparatively much narrower choice of dental care providers from a much pared down specified list.
The next classification is based on the difference between an individual dental insurance plan and a family dental insurance plan.
The individual plan caters to an individual, whereas the other covers a family.
Then comes the difference between the compensation amount and the type of treatment coverage offered. Under this classification are covered three different dental insurance plans. They are indemnity dental insurance plans, capitation dental insurance plans, and direct reimbursement dental plans.
A direct reimbursement dental plan features entire repayment by a company of the complete costs borne by its employee for his/her dental treatment, regardless of amount, coverage, or dental care provider. Under this plan, the company keeps aside a reserve out of its expense funds for this purpose.
The American Dentists Association (ADA) recommends this plan, because it is straightforward and dentists are not then required to do much paperwork. However, only a cash-rich company can afford to meet the huge expenditure that is required to offer such facilities to its employees.
An indemnity dental insurance plan features 50 to 80 percent payment (in respect of certain dental treatment services rendered to an insured patient) to a dental care provider by a dental insurance company. The insured patient has to bear the balance cost of the treatment.
Further, the patient needs to pay the designated premium to the insurance company as also to make his/her portion of the payment to the dentist before the insurance company will make its portion of the payment to the dentist. Under this plan, the range of treatments covered is quite restricted.
A capitation dental insurance plan features a comprehensive range of treatment services, whichever are rendered by a dental care provider such as a dental health maintenance organization (DHMO) to an insured patient. The insurance company makes a payment to the dental care provider on a per month per patient basis. The patient has to make a portion of the payment on a per visit basis to the dental care provider. |