How to understand California indemnity dental insurance plans
This type of dental plan pays the dental office (dentist) on a traditional fee-for-service basis. A monthly premium is paid by the client and/or the employer to an insurance company, which then reimburses the dental office (dentist) for the services rendered. An insurance company usually pays between 50% – 80% of the dental office (dentist) fees for a covered procedures; the remaining 20% – 50% is paid by the client.
These plans often have a pre-determined or set deductible amount which varies from plan to plan. Indemnity plans also can limit the amount of services covered within a given year and pay the dentist based on a variety of fee schedules. Some typical features of these plans:
- High deductibles before coverage begins (well-designed plans don’t apply the deductible to preventive services)
- Probationary periods on certain procedures that last up to a year
- Annual dollar limit on benefits
- Chose your own dentist
- Your average monthly cost: $35+
- Companies selling these plans are regulated by state insurance departments.