What are Reimbursement and Discount Dental Plans?<

Those who are searching for comprehensive dental coverage may be confused with all of the choices available today. HMO, PPO, discount and reimbursement plans may all be offered by your employer and/or proposed dental insurance company. It’s important to understand the differences between these options when looking for the right all care dental plans for you.

Reimbursement plans are a growing trend among employers today, and are based on attempts to reduce dental care costs by eliminating the need for premium payments. This also saves you money on your share of the premium, but does require upfront payment of services provided by your dentist.

Each reimbursement plan is different, and will include yearly limits on the benefit you’re eligible to receive. For example, your employer may offer 100% reimbursement on the first $200 of care, then 50% up to a maximum of $2000 for the year.

This option works by you paying your dentist upfront for services rendered, then you provide your employer with a receipt for reimbursement. Although this plan is not “insurance”, it does lower costs, and allows you to choose whichever provider you want.

If you have a choice between several dental plans, it will be up to you to determine which option will fit your needs the best. Do you have poor oral health and need to lower your out-of-pocket costs? If so, an HMO or PPO-based plan may be best.

However, if your general expenses are very low on an annual basis and you’d rather pocket the money saved in insurance premiums, trying a reimbursement plan may be advantageous. Most employers will allow you to change plans during a certain enrollment period annually if the first option does not work well for you.

Discount programs must be approached very carefully. These are also not “insurance” plans, but sort of like a membership program. For an annual or monthly fee that is typically less than dental premiums, you will have the option to visit accepting dental offices to receive discounts on preventive care and other services.

These discount programs will still require you to pay out of pocket for your dental expenses, but at a slightly lower cost. There are only specific dentists that will participate in these programs and accept your discount card.

Discount dental programs are typically ideal for anyone who absolutely can not afford all care dental plans, or require immediate care of a procedure that requires an extensive waiting period. If your dental plan is brand new and requires a waiting period of 24 months for your much-needed wisdom tooth removal, then a discount program may be of great value.

Many employers and insurance companies will also offer discount dental cards to supplement the available savings through your insurance plan. When presented with the option of participating in a reimbursement or discount plan, research the limitations, exclusions and necessary contributions in order to receive the benefits.

Always remember that these programs should never replace major comprehensive dental plans, but are much better than no kind of discount on your regular dental services.