Indemnity dental insurance is the type of dental plan most of us think of when we consider purchasing insurance; it was, at one time, the most popular type of insurance. Currently, this type of dental plan is often bought by those who are self employed or whose employer does not offer group dental insurance. At its most basic, a dental indemnity plan acts on a fee-for-service basis, giving you access to dental care as you need it.
Indemnity Dental Plan Advantages
The benefits of purchasing dental indemnity insurance are as follows:
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Choice of provider: Unlike most managed care plans, dental indemnity plans give you complete control over which dentist you go to. There are no preferred provider lists with this type of plan. This usually applies to specialized treatment as well, such as that performed by oral surgeons, since these plans don' require referrals. Your plan, however, may require preauthorization.
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Good coverage: These fee-for-service plans offer high coverage rates, from 50 to 100 percent for those dental procedures deemed "regular and customary." Preventative procedures like checkups and cleanings are covered at or near 100 percent, while major procedures are covered at 50 percent. These coverage rates are often higher than those of managed care plans.
Indemnity Dental Plan Disadvantages
While dental indemnity insurance does have its advantages, it also has its downsides:
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Deductibles and yearly maximums: Your indemnity dental plan may require you to meet a deductable before benefits begin. This means you'll have to pay total costs up front--until the deductable is met. There's also typically a yearly cap for services that the plan will cover, usually around $1,000 a year.
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Waiting periods for benefits: After purchasing dental indemnity plans, individuals may need to wait a period before benefits begin--especially for major procedures. This waiting period can be up to a year, and sometimes longer. If you need immediate care, another type of dental plan, such as discount dental insurance, might be a better option.