There are many types of dental insurance programs like Indemnity Plans,
Preferred Provider Plans, HMO Plans, dental health maintenance organizations plans, Discount Plans etc. But three most popular dental insurance plans are as follows:
Indemnity Plans: Dental Indemnity Insurance is a traditional fee-for-service insurance plan. The policy holder has to pay a monthly premium to the insurance company and in return the company covers a portion of his dental care expenses. In general, it has been seen that an indemnity plan pays off 100 percent of the costs for preventive services; 80 percent for common restorative services; and 50 percent for major treatments such as crowns and orthodontics.
Some basic features of Dental Indemnity Insurance:
It offers high deductibles before coverage begins. However, a well-designed plan does not apply the deductible to preventive services.
It provides a probationary period on certain procedures, which last up to a year.
Annual dollar limit on benefits
It gives you enough freedom to choose your own dentist
Your average monthly cost with this plan will be $40+ per person
Companies, which sell these plans, are generally governed by state insurance departments.
Dental Preferred Provider Organizations: A Dental Preferred Provider Organization falls between an indemnity plan and a dental HMO. In this plan, a group of dentists provide you services as long as you are under their network, at a discounted rate allowing you to enjoy your savings. Unlike dental health maintenance organizations or DHMO, which is more restrictive than Dental Preferred Provider Organizations, with PPO you can still go out of the network and can receive some of the offered benefits.
Some basic features of Dental Preferred Provider Organizations:
It has monthly premiums
Annual dollar cap
You must stay within the approved network of dentists or you have to pay higher deductibles and co-payments
Your average monthly cost will be $40
Companies, which are selling these plans, are governed by state insurance departments