Dental Insurance Rates and Quotes Key Terms

Sound like an expert when shopping for dental insurance

Understanding dental insurance rates and quotes can be quite a task if you don't understand the key terms. The following terms will give you the knowledge you need to make an informed decision about what type of dental coverage you want for your employees or your family. You can also use these key terms to compare dental insurance brokers and ask informed questions of your brokers and agents. Knowing the language is an important part in getting the best dental benefit package you can for your business.

 

Dental health maintenance organization (HMO)

Health maintenance organization plans typically cost the insured a little less because the insured has to select a dental health provider from a list of qualified providers. These plans are also known as capitation dental health insurance plans because the participating provider receives a capitation fee from the insurance company every month whether or not someone has an appointment.
Try: When trying to determine if an HMO is right for your business and your employees read the overview provided by QuickHealthInsurance.com.

Preferred provider organization dental insurance (PPO)

PPO plans gives the insured more choices as to a dental health provider, although the insured still can't choose any provider they would like. These plans typically have a deductible that must be met along with a co-pay even after the deductible has been met.
Try: To compare PPO plans next to HMO plans, discount plans and indemnity plans (described later) visit DentalPlans.com. You can see the pros and cons for your business.

Covered benefits

Covered benefits are those services that the insurance will pay for, either in full or partially. You should make certain that the plan covers preventative care, basic dental care and major dental care at a minimum. You could consider a plan that covers orthodontics. The benefits that are covered directly affects your dental insurance rate.
Try: Make sure that whatever company you choose to handle your dental insurance is clear in terms of both what is covered and what isn't covered. For an example of what a covered benefits list should look like, visit the Building Service 32BJ Benefit Funds website. You will want to make sure your covered benefits are listed just as specifically.

Indemnity dental insurance plans

In indemnity dental insurance plans, the insured has to pay all the costs for services directly and then submit a claim for reimbursement once a deductible has been met. Obviously, this type of plan is not too popular with employees, but they can pick whatever provider they choose.
Try: An overview, including pros and cons of indemnity dental insurance plans can be found at InsureLane.

Dental discount plan

A dental discount plan is different than dental insurance, so as you shop around for plans be aware. With a dental discount plan, your employees still have to pay the bill, but at a discounted rate.
Try: For a list of the differences between dental insurance and dental discount plans, visit USInsuranceOnline.com.

Flexible spending accounts Flexible spending accounts (FSA)

Your business could offer employees a flexible spending account. This allows employees to put aside a certain amount of money pre-tax to use towards dental expenses. Employers could also contribute to this plan if they choose.
Try: Aetna has a good overview of flexible spending accounts and an explanation of how they work. FSA's are a great benefit for employees to cover dental expenses that aren't covered by insurance or they can supplement a discount plan.

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