Dental plans and Dental insurance
Dental coverage is normally not underwritten by insurance
companies because the treatment and medication of dental needs
are predictable and follow a time table. No individual would opt
for a dental insurance plan if he were to pay more in premium
than in annual dental charges, and the insurance company would
lose money if they pay more in claims than the premium collected
for each policy they underwrite.
Despite these drawbacks, some companies offer dental benefits by
group discount schemes. These are also called discounted dental
plans or affordable dental plans. These are a kind of "clubs"
where membership costs a little money monthly or annually where
the members can avail of dental services at a discounted rate.
The dental service providers or dentists affiliated to these
"clubs" have agreed to provide dental services at a discounted
rate. The payment is made directly by the patient to the
dentist, no paperwork or claims or future hassles. These "clubs"
only do matchmaking between the patient and the dentist, earning
money in the process. The dentist in turns gains to earn due to
larger volumes of work. The patient gets the service at a
discounted rate. It's a WIN-WIN for all parties involved.
Dental Insurance when offered is again a complicated issue. The
insurance company generally stresses upon background checks and
pre-existing conditions. After this goes through you have to
wait out until the coverage starts. When the treatment is
actually undergone, a lot of paperwork regarding claims, %age
exclusions etc. come to the fore where it becomes more of a pain
to actually undergo and finish the process of reimbursement.
However insurance has its own benefits and plans have their own.
A lot of employers also provide dental insurance whereupon the
need for plans ceases for the individual. It's for the
individual to decide between the two as per their requirement,
needs and current situation.