Are you considering what type of dental plan to get? Learn more about Indemnity Dental Plans and how they can benefit you.
The Indemnity Insurance plan gives you the liberty to choose the dentist that you want to care for your mouth and teeth. The dentist doesn’t have to be affiliated with certain networks. This plan is also referred to as the traditional dental health insurance or fee-for-service plan and this was the first type of dental plan available through insurance companies. When paired with a discount network, it is one of the most cost effective insurance plans that you can avail.
How Indemnity Dental Plans Work
In this type of dental plan you would need to settle a deductible amount for the procedure or treatment that you availed. After doing so, your insurance provider will cover part of your dental cost. In most cases, the insured must pay the amount of the service directly to the dentist, after which you will have to file a claim with the dental insurance company to receive the reimbursement of partial amount depending on how much the insurance covers for the particular procedure. The amount that the insurance company will reimburse you varies because the coverage of providers is not the same. Some covered dental insurance benefits may have a higher coverage compared to others. Should the amount of the reimbursement be less than the covered amount, you will be responsible for the difference.
The indemnity insurance company will compute the payment that you will get from them based on usual, customary and reasonable rates and this is how you will determine how much reimbursement you will get for a covered dental insurance procedure. The insurance provider would normally have a payment schedule to show you how much a dental treatment would reasonably cost based on the service and the physical location of where the service was done. Should the dentist charge you more than the customary fee, the excessive amount will be your responsibility.
This type of plan will normally entail your having to settle a deductible and/or a coinsurance amount. The deductible is the amount to be paid annually to the covered dental benefits before you become qualified for reimbursement. Coinsurance, on the other hand, is the percentage of the customary rate that you will be responsible for. In a standard indemnity plan, the coverage will usually offer an 80/20 coinsurance. This means that the insurance company will settle 80% of the cost of the procedure or treatment and you will pay for the remaining 20%. Most of the indemnity dental plans have a maximum benefit limit annually which means you can only file a reimbursement of up to a certain cost.
You might also need to pay certain premiums for this plan but you will be assured that you can still get major savings of up to as much as 80%. The indemnity insurance plan will still reimburse you for the services you availed so long as the service is included in the coverage plan.