Comparing Types of Dental Insurance Plans for Small Business

There are four main types of dental insurance plans. Here is some basic information on each of those types to help guide you in choosing the best small business dental plan for you and your employees.

DPPO (Dental Preferred Provider Organizations) offer flexible dental insurance options, and typically allow patients to choose their own dentists rather than being limited to a list of approved, in-network dental providers. DPPO professionals contract with managed care organizations to offer special rates and discounts to their patients. Discounts vary depending on the terms of the small business dental plan.

A disadvantage for your employees may be that they need to fill out claims forms themselves. This can be a tedious and confusing process. In addition, small co-pays are usually required, so make your employees aware they will need to come up with a few dollars for each visit. Premiums for DPPOs are generally more costly, but your employees will appreciate being able to stay with their current professionals while still receiving substantial discounts.

Dental HMO insurance plans generally have much cheaper premiums than DPPO plans, but strictly limit patients to in-network dentists and dental professionals. Exceptions can sometimes be made for referrals, but your employee will need to clear that with the DHMO before obtaining any services.

A clear advantage of a DHMO over a DPPO is that dental professionals are not required to see a certain number of patients to remain members of the insurance organization. This allows professionals to spend an adequate amount of time with a given patient, which is in the patient’s best interests.

Dental indemnity insurance plans are structured so that patients pay the dentist up front for costs and then receive reimbursement directly from the insurance company by submitting claims forms. This process works well for a small or medium-sized business with many employees to cover, but is usually too time consuming for micro-businesses or individual families.

This type of indemnity plan does not limit the dentist choices to a certain list, and a patient can see any dentist without obtaining a referral from the primary. This freedom and flexibility is balanced through higher deductibles. This type of insurance could be cost-effective for your small business dental plan needs.

Discount dental plans are not insurance, per se. This alternative allows your employees the most freedom of choice in services and procedures, and allows them to be responsible for their own dental choices. Your employees pay a small membership fee for access to an extensive network of participating dental professionals. Almost every service is discounted, some up to 100 percent. Individuals and small businesses benefit greatly by becoming part of a discount dental plan.

Dental preferred provider organizations, dental health management organizations, dental indemnity insurance, and/or discount dental benefit memberships each have their own advantages and disadvantages for the small business dental plan. As a business owner, you must balance the needs of your employees with the costs they will incur to figure out the most acceptable choices.