Types of Dental Insurance - 3 Main Types of Traditional Coverage12 Nov, 2015
Types of Dental Insurance - 3 Main Types of Traditional Coverage
Choosing the right dental plan for you and/or your family is not always easy to do. Not only are there a lot of choices, understanding how dental insurance works is somewhat difficult because it is very different from traditional health insurance. If you are in the need of dental coverage, the descriptions on the three main types of dental insurance below will help you to better understand your options.
1) Dental Health Maintenance Organization (DHMO). This is the least expensive of all types of traditional dental insurance policies, but it is also the type with the most restrictions. You are limited to a select group of participating dentists, from which you choose a primary care provider. Often, there is a cap on how much will be covered for dental work and really expensive treatments can be prohibited. This plan is best for procedures that are considered to be maintenance or routine.
2) Preferred Provider Organization (PPO). This plan generally comes with higher premiums than a DHMO plan does, but it also comes with more options and better coverage. There is still a list of select dentists to choose from, but you can also opt for a dentist that is not on the list. Bigger, more expensive and complex procedures are usually covered on these plans.
3)Indemnity. This is the most expensive type of dental coverage because it provides the insured party with the most options and the best coverage. Depending on the type of dental work being performed, you could see coverage amounts between 50% and 80% of the total cost. Some indemnity plans even work off of co pay systems.