3 Types of Dental Insurance Plans

Dental insurance plans are designed to help individuals pay for the costs that are associated with dental services. An individual will pay premiums to the insurance company, and the insurance company will then pay a certain amount towards dental coverage. Here are some of the different types of dental insurance plans that you can purchase.

1. PPO

The PPO dental insurance plan is one of the most common types of plans that is available. The term PPO stands for Preferred Provider Organization. With this type of dental insurance, you will have access to a network of dentists that contract with your insurance company. As long as you go to one of these dentists when you need service, you will get a substantial discount on the services. In addition, the insurance company will pay a bigger percentage of your bill at these providers. If you go outside of your network, you may still be able to receive some benefits, but they will not be nearly as good as what you could get if you went to an in network dentist.

2. DHMO

The DHMO is another popular type of dental insurance that you can purchase. This term stands for Dental Health Maintenance Organization. With this type of insurance, you will also be working with a particular network of dentists. However, this type of insurance works slightly different than the PPO. With this type of insurance, each dentist in the organization receives a set monthly payment from the insurance company. Because of this, the dentist has to provide service to anyone that has insurance coverage under this organization. One of the biggest benefits of this type of dental insurance is that smaller services will generally not require any out of pocket payment by you. If you have to get a more extensive type of dental procedure done, you may have to pay a co-pay or co-insurance out of your own pocket. 

3. Discount Plan

Another type of dental coverage is a dental discount plan. With this type of coverage, you will contract with a dental discount network. This is a network of dentists that agree to provide services at a discount to individuals who work with this organization. In order to receive the discount, you have to be willing to pay cash to the dentist at the time that services are rendered. The reason that dentists often agree to accept dental discount plans is because they need help with cash flow. When dentists rely on insurance companies to pay, they sometimes have to wait a long time before they can actually get paid. They had to file paperwork with the insurance company and wait for the insurance company to reimburse them. However, with a dental discount plan, the dentist can receive some cash immediately in order to help pay for overhead costs while they are waiting on other insurance payments to come in.

blog comments powered by Disqus