Dental Indemnity Insurance Plans
Indemnity dental insurance plans are a type of fee-for-service plan often referred to as "traditional" insurance. Under this type of plan, an insurance company pays any dental services claims based on the procedures performed, usually as a percentage of the total charges. These plans have a deductible, the dollar amount a participant must pay out-of-pocket before the insurance company will provide any benefits. Participants are generally allowed to choose their own dentists, but the indemnity plan may be paired with a preferred provider organization (PPO).
Most of these plans have a maximum benefit allowance for each procedure, which is referred to as "usual, customary, or reasonable" (UCR) fees. UCR fees are determined by the dentists, and reimbursements to participants are made according to the participant's plan of benefits, which is typically a percentage of the insurance company's fee schedule.
One of the advantages of an indemnity plan is that a participant knows what he or she will pay for a particular dental service. Another benefit is the cost-saving opportunity: participants who use a dentist within the network pay less for their dental services than when using out-of-network dental services. Because these plans are nationwide and not restricted geographically, this benefit extends throughout the country.
Dental Insurance Directory