Now that we are in Open Enrollment Season, many of our clients are also thinking about dental insurance so we thought we’d share this interesting piece we just read:
Supplemental Dental Insurance for
Individuals – 11 November 2015
#Instead of Buying Dental Insurance, You May Want to Consider a Discount PlanDental insurance seems like a good idea, but as personal finance blog Smart Money points out, most plans cover very little. Instead, they suggest looking into Dental Price Clubs which offer discounts and can save you more money in the long run.
The problem with dental insurance is that coverage is pretty poor. While rates are low and the cost of two yearly checkups are often fully covered, payouts for actual dental work are pretty low. Smart Money notes that payouts on most plans are between $1,000 and $2,000 per year, and those numbers haven’t changed since the 70s. Instead, they suggest looking at discount plans (like the ones from Northeast Dental Plan. Careington. Brighter.com. and dentalplans.com ). These plans cost between $75 and $150 per year and provide you with pre-negotiated lower rates. In their comparison, procedures through dental insurance and discount plans cost about the same the first time around, but because yearly maximums were quickly met with insurance the discount plans often saved more money for people requiring multiple procedures per year. It all came down to this:
In the final analysis, experts say the new companies might be worth a look. With regular dental coverage, it’s usually impossible to get back more than the cost of the premiums (because of co-pays and maximum annual reimbursements). In that sense, dental insurance is a form of pre-payment. But rather than gamble on how much coverage you might need, or wait to get all your work done, a discount plan may be a better deal to pay for, and get, your dental care when you need it.
What’s best for you will likely depend on the amount of dental work you need per year. You’ll want to take a look at your current costs, the offerings available to you, and what will save you the most money. For more information, be sure to hit up the full post over at Smart Money.
So, what are your plans? Will you be adding Dental Insurance to you 2016 arsenal? Or will you be switching to a discount dental price clubs? If you’d like our help in deciding, please call us at 877.789.5831