The Average Cost of Dental Insurance
Forty-six percent of the U.S. population does not have dental insurance, according to figures released by the National Association of Dental Plans. Whether individually purchased or employer-sponsored, three types of dental insurance exist, each varying in cost and benefits.
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DHMO
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Individual coverage through a Dental Health Management Organization (DHMO) averages $13 per month. DHMOs are excellent for preventive services, usually covered at 100 percent, but tend to limit the types of major and restorative services by either paying less (50 percent) or not covering at all.
PPO
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The 2008 report of the National Association of Dental Plans states that the average PPO dental insurance plan costs $30 per month, per individual. PPO plans pay a set price for "preferred" doctors within their network at a set percentage, most commonly 100 percent for preventive services, 80 percent for basic and restoration, and 50 percent for any major service. Plans vary and less coverage lowers the monthly cost.
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Indemnity Plans
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Indemnity plans, also called "fee-for-service" plans, are the traditional insurance types, rarely available for individual purchase and provided mostly by large companies. The average premium is $40 per individual on a monthly basis, and services are covered at any dental practice, allowing more freedom to pick and choose providers. Coverage amounts vary and maximums are usually capped at $2,000 per year.
Waiting Period
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Many plans will have a mandatory waiting period, sometimes up to a year, before treatment can begin. This means that you will be paying the premium each month for a year with no access to benefits.
Limitations
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While a dental insurance plan serves to save money in the long run, the schedule of benefits must be clearly understood. With "missing tooth clauses" that prevent replacement of teeth extracted before enrollment and other treatment limitations, the monthly premiums may not be worthwhile if a plan doesn't cover the services you need.
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References
- Photo Credit Image by Fotolia.com, courtesy of Alexey Klementiev
