For many years, the standard method of obtaining dental care
was through a traditional dental insurance policy. These policies were issued
exclusively by licensed insurance companies who, based on claims rates, would
price the cost of dental care to large employee groups. Individuals had no
access to traditional dental insurance since the pricing of insurance was based
on large groups on which to spread the costs.
Fast forward to today and you see a variety of options for
individuals, (and their families) to obtain dental services at substantial
savings. Whether the dental plan is offered by a third party company or
directly from the dentist, it merely involves joining a membership group that
offers discounts to its members for dental services. Since these dental savings
plans are not insurance, it does not require an insurance company to issue nor
administrate. However, many insurance companies are now offering Dental Savings
Plans in addition to their traditional insurance model.
Although the premise of the dental savings plan seems
simple, some dentists are constructing what’s defined as a “prepaid dental
plan” which requires proper licensing and registration with the State Departments
of Insurance. And since these dentists are not following the state Statutes
governing “prepaid dental plans” they are considered in violation of State
Insurance laws.
In addition, by purchasing a dental plan directly from a
dentist, you are limiting your ability to obtain a second opinion, the ability
to utilize a Specialist and your dental plan will become worthless should the
dentist close their business, end the plan or retire all together.
What should you look
for when evaluating a Dental Savings Plan?
1. First and foremost, longevity of the dental plan. The longer
a dental plan has been in business, the more successful it has been retaining
its provider network and membership base.
2. Look
at the size of the provider network. A couple of dental offices cannot
provide all the services necessary as can a network of several hundred in
your metropolitan area.
3. Yearly
membership costs. Some plans when you factor in the membership fee and the
minimal reduction in costs end up costing you more in the long run than
paying full price for the dental service if/when you may need it.
4. Are
any services provided free of charge? A third party Dental Savings Plan
can offer it but a proprietary dentist’s plan cannot, unless they are
properly licensed and governed by the Department of Insurance.
Dental Savings Plans are widely being accepted as the cost
effective alternative to traditional dental insurance. Should you be in the
market for such a plan, consider American Dental Plan, Arizona’s oldest dental savings plan since
1978. Yearly membership fees start at
only $59 and membership includes a free exam and 4 x-rays with savings up to
40% on additional dental services. There are over 750 general and specialty
dentists and no referrals are required to see a Specialist. Complete details including the fee schedule
and list of participating dentists can be found at www.arizdental.com