What Are Dental Discount Programs?
A Dental Discount Program is not really insurance at all. Most of the programs are very careful to note this fact on their literature and advertisements. The Dental Discount Program is a contract between a third party and a dentist, or group of dentists, to provide dental services for a patient at a reduced rate. In effect, the third party matches dentists and patients for a fee.
What makes the Dental Discount Program different from an insurance plan is that the patient pays the dentist directly for his services. The Company that acts as the third party receives a fee from the patient for membership in the Program. This fee provides the profit and administrative costs of the Company. The Programs are actually a win/win type of arrangement for everyone involved.
The dentists are convinced to join the Program and offer the discounted fees for their services by the promise of patients who are directed to them by the Company. The patients benefit by having access to services at the discounted rate. Since the fees for membership in the program are relatively low, they do not pay for services that are never needed as they might do with insurance premiums.
The relative merits of a Dental Discount Program and a Dental Insurance Plans are a subject of some debate. It must be remembered that Insurance of all types, including Dental, is a part of the risk management function of solid financial planning. Risk management is concerned with preventing any risks that may derail the careful financial planning process and produce hardship and crisis. A major dental condition that needs emergency treatment could be such a risk. While the Dental Discount Program might provide a slight reduction in the cash expenditure of such an event, it will not mean much if the cost of the procedures is excessive and ruinous.
Insurance plans also tend to pay for preventative care, especially in dental care where a little prevention is often worth a whole lot of cure. The Dental Discount Program, of course, will reduce the cost of preventative care, but will not usually pay all of it. When you have an understanding of the pro’s and cons of both Dental Discount Plans and Dental Insurance Plans, and have gotten all of the pertinent facts from your Insurance Agent, you can decide which is the best for your individual situation and needs. By: Barry Waxler Article Source: http://www.ArticleDashboard.com Get quotes on Callifornia group dental insurance plans at UFCAmerica.com.
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