Buying dental insurance can be a very confusing process because there are many different coverage options available to choose from. When you buy dental insurance, there are three key things that you need to consider.
The first, of course, is the cost of the insurance. Dental insurance can be expensive and cost prohibitive if you are responsible for all of the costs and are not receiving a subsidized plan from an employer.
The second is the coverage. You want to make sure that you can see a dentist when you need to and be confident that you can get the care you need.
The third is the deductible, if applicable. A deductible is an amount of money that you must pay before your insurance kicks in. As you consider all of these things, there are three different types of dental insurance plans you are likely to encounter and you will need to know the differences between them.
The Three Options for Dental Insurance
The three main options for dental insurance that you will come across when browsing for an insurance plan include indemnity insurance, PPO insurance and DHMO insurance.
Indemnity insurance means that you are insured, or indemnified, for money you spend on dental care. PPO insurance stands for Preferred Provider Organization, which means that there are certain approved dentists and dental professionals within a network that you can visit and for which you are covered. The last option is DHMO, or dental health maintenance organization. Like a traditional HMO, this means you have a primary care doctor who manages and coordinates your care.
Each of these different options works in a different way and each has its own pros and cons.
DHMO
A dental health maintenance organization is normally the least expensive dental insurance option. In some cases, it can cost less than half of what a PPO or indemnity plan will cost. With a DHMO, however, you may have to have specialized care or visits to a specialist approved before they will be covered. Your primary care physician or dentist will have to refer you to specialists as well; you cannot see whatever dental professional you want.
Your DHMO and any other specialists you see typically must be within the list of those professionals that accept your insurance and that charge rates approved by your DHMO. Any costs above and beyond these for other specialists that you may choose to see will typically not be covered.
PPO
A PPO is a preferred provider organization. When you are covered by a PPO, you have more flexibility in seeing your dentist. A PPO usually involves a wide network of dental health professionals who are members or who participate in the network. In most cases, you may see any professional within this network without needing a referral or special permission to do so. This gives you greater control of your own dental health needs since you will not need to have referrals or have all of your care approved.
Again, you do have to stay within the network of physicians who accept your insurance and who have agreed with your insurance company`s terms and rates in order to have your care fully covered.
Indemnity Insurance
Indemnity insurance is an insurance policy wherein the insurer bears the financial costs that you incur.
With indemnity insurance, you are generally permitted to see any licensed dentist to get your care. Depending on your policy, the costs of doing so may be covered up to 100 percent, especially for things such as preventative care.
Indemnity insurance is usually the most comprehensive coverage, but it is also the most costly of the insurance policies. This means you can spend money saving money on care, so you should do the math carefully to determine if the added cost is right for you.
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