Dental Discount Plans vs Dental Insurance Plans
When someone has a toothache, it’s a little late to be thinking about saving money, but many people are saving money on dental procedures by planning ahead and joining companies that offer dental discounts. Companies that offer discounts are different than insurance companies in many ways but the most important difference between discount plans and insurance plans is that you never pay full price with a discount plan. However, there are other things to consider when choosing between the two different kind of dental plans.
When you have an insurance plan, you will pay a monthly fee of course, but on top of that there are 3 other barriers to go through before insurance kicks in. First there is the waiting period. Anytime you sign up for medical or dental insurance, there is always a waiting period, which usually last 2-3 months before you can see a doctor. Second, even after the waiting period you must pay out of pocket regardless of your plan, because there is a copayment. This is usually $15 or $20, a small amount, but this is still required on every single visit, including follow up visits, so it can add up over a year. And third, there is of course the deductable, which is where the real cost comes in for the patient.
It is the deductable feature of insurance plans which makes discount plans so popular. Let’s say you have a $500 deductable for a prodedure that will cost $600. Under all dental insurance plans, with the $500 deductable, the insurance company will only pay for $100 of the $600 dental work, and if you are paying $25 per month for the insurance plan, after 90 days when the plan kicks in, you have already payed $75. Add another month for the work to be completed, your total cost will have been $600. The sum total is that after 120 days, your mouth will feel better but your pocketbook won’t because you will have spent $600 and the insurance company will have spent zero. Plus, the following month after your dental work is completed, you will still be paying that $25 per month to the insurance company.
Compare this to a simple discount company plan, in which you pay out of pocket for everything, but the dentist may offer you a 25-30 percent discount because you are a cash customer. With a $600 procedure, you would only pay $450 or less, and since some discount plans charge only a $15 month fee, you will have saved a significant amount of money by going with a discount company rather than having an insurance plan. Regardless of which type of plan you choose, just remember to weigh all the pros and cons and base your decision on what is best for your own situation.
