Does anyone need Insurance? This question is asked by many Americans who have any kind of insurance. With changes in our healthcare system, there will be some confusion and many changes for the foreseeable future.
What is “insurance” anyway?
Insurance is a tool that offsets financial losses due to accidents or incidents or unforeseen circumstances. Having a group of people in an insurance plan creates an affordable ‘pool’ for those who may need the service. Actuaries are people who work in the insurance industry who are smart enough to figure out how many people in that group will need that service.
In simple terms, if one out of twenty people will need a $10,000 Healthcare procedure, if each of those twenty people contributed $500 to the insurance pool, statistically, they would have the $10,000 (20 times $500) for the procedure.
One Aspect of Healthcare is Dental Insurance
With this in view, insurance is always advocated but if one is young and healthy and doesn’t need to visit a dentist more than twice a year, dental insurance will not be a requirement, since the premium for such insurance may be more than the annual tooth maintenance bill.
People with a consistent, pressing dental history are advised to purchase dental insurance or join a discounted dental plan for the simple reason that dental bills can turn out to be very steep. Millions of Americans are undergoing root canal and cavity procedures despite the fluoride in drinking water. Dental health in the USA has not been of very high standard over the decades. Dental health depends upon a variety of factors including dental hygiene, stress, personal eating habits, nutrition etc.
The programs of dental coverage available are Indemnity Plans, Preferred Provider Plans, HMO Plans and Discount Plans
Dental Indemnity Insurance Plans
These are normal, traditional insurance coverage plans where you get a percentage of your dental bills covered for a monthly fee or premium. Normally a indemnity plan covers 100% of preventive services, 80% of restoration services and 50% of major treatment like orthodontics.
Dental Preferred Provider Plans
These plans cost an average of $40 per month and give you highly discounted rates of dental procedures within the specified network. A few benefits are available outside the network also. These plans are regulated by state insurance departments and fall in the insurance category.
HMO Dental Insurance
These insurance plans are also known as capitation plans. They operate like Health Maintenance Organizations (HMO). These are also regulated by state insurance department and cost between $20-$40 a month.
Dental Discount Plans
Discount dental plans are like clubs where you get the best deals when you show your membership card. These are again network based. They give best value to individual and family memberships. This membership is only purchasing a discounted access to a network dentist and is not considered insurance.
PCM has an association with one such discount provider – DentalPlans.com – they offer dozens of choices for dental plans that may work for you.