What is a indemnity dental plan?

Answered by Douglas Hiatt

An indemnity dental plan, also known as traditional insurance, is a type of dental insurance plan where the insurance company pays claims based on the specific dental procedures performed. Unlike other types of dental plans, such as HMO or PPO plans, an indemnity plan typically does not have a network of dentists that patients must choose from.

One of the key features of an indemnity dental plan is that it allows patients the freedom to choose their own dentists. This means that individuals can see any dentist they prefer, without being limited to a specific network. This flexibility can be particularly beneficial for individuals who have established relationships with their dentists or who have specific dental needs that require specialized care.

In terms of how the insurance company pays claims in an indemnity plan, it is usually based on a percentage of the charges for the dental procedures performed. The specific percentage covered may vary depending on the plan and the procedure. For example, the insurance company may cover 80% of the charges for a routine cleaning and 50% of the charges for a more extensive procedure like a crown or root canal.

In some cases, an indemnity dental plan may also be paired with a Preferred Provider Organization (PPO). This means that while patients still have the option to choose their own dentists, they may receive additional benefits or discounts if they choose a dentist within the PPO network. This can be advantageous for individuals who want the freedom to choose their dentist but also want the cost-saving benefits of a PPO plan.

An indemnity dental plan provides individuals with the flexibility to choose their own dentists and have a wider range of options for their dental care. It allows patients to have greater control over their dental healthcare decisions and can be a good fit for individuals who value choice and flexibility in their dental insurance coverage.