Dental Savings Plans vs Dental Insurance

Dental care financing plays a vital role in financial and healthcare planning. It ensures that you and your family have the funds for preventative oral healthcare and any necessary procedures. Dental care is not part of the essential benefits health insurance must cover under the Affordable Care Act.

If you’re looking to cover your dental costs, you might opt for dental insurance or a dental savings plan. Use this guide to compare dental savings plans versus dental insurance.

What Is a Dental Savings Plan?

Also known as a dental discount plan, a dental savings plan is a program that offers members reduced dental rates. Members pay a set annual fee in return for benefits. Dental savings plans are simple schemes with no annual limits, deductibles or waiting periods.

Networks of dentists take part in the plan. Members must use networked dentists to receive discounted prices. Prices are often discounted by between 10% and 60%. The scheme may exclude some services from the savings plan, so check for exclusions before signing up. Note that these plans do not offer insurance coverage, and you remain responsible for paying your service provider.

Pros

Budget-friendly: The annual fees for dental savings are lower than those required for dental insurance.

No waiting period: You will usually have to wait a specified period before claiming from dental insurance. You can start saving on your dental savings account as soon as you enroll.

Easy to understand: Dental savings costs are predictable, and the claims are easy to process.

No limits or deductibles: There are no limits to how much you can save. You don’t have to reach a deductible before coverage starts. Dental savings plans may offer discounts on cosmetic dentistry or orthodontics excluded by dental insurance.

Vast networks: Most plans have large networks of dentists, so it is easy to find a dentist close to you.

Cons

No coverage: You will receive discounted prices on a dental savings plan. These do not offer dental coverage, so you will still have to cover some of the costs.

Upfront payment: You must pay the fee whether or not you use the service. 

Network dentists only: You must use dentists in the network to claim discounts

Excluded services: Savings plans do not cover all dental services.

What Is Dental Insurance?

Like all health insurance plans, dental insurance shares risk between members. Members pay monthly premiums. In return, the insurance company covers a percentage of the costs and will only cover some dental procedures. What the plan covers will depend on the plan you have chosen. Factors like coverage levels, copayments, deductibles and annual limits will differ.

Pros

Lower dental costs: Dental insurance can significantly reduce your dental costs, especially for routine procedures like checkups.

Preventative care incentives: Many insurance companies offer full coverage for preventative dental care.

Reduce the cost of major procedures: Major procedures like root canal treatments and crowns are expensive. Dental insurance can reduce the impact of such costs.

Spread the cost: It is easier to budget by paying a monthly premium rather than covering dental costs as they happen.

Cons

Expensive: Dental insurance may be expensive, especially for plans with higher coverage

Exclusions: Dental insurance will not cover all dental procedures. Insurance often excludes cosmetic dentistry and orthodontics. You’ll need different insurance for orthodontic care. The insurance may also exclude preexisting dental conditions

Network limitations: Some dental insurance may require you to use the services of a subscribed dental network

Cost sharing: You may still have to pay some of your dental costs by way of deductibles and copayments

Similarities

Though they differ in many ways, there are some similarities between dental insurance and dental savings plans.

Objective: Both programs aim to make dental costs more affordable. They do this by reducing and spreading dental care costs

Provider network: Both programs may support a service provider network, though some dental insurance companies do not

Payment responsibility: You will take responsibility for some of the costs, whichever option you take.

Focus on preventative care: Both options encourage preventative care by offering lower costs for these services.

Differences

Choose wisely between dental savings plans and dental insurance — you’ll need to factor in the following differences.

Coverage

Though procedures and discounts may differ, dental savings offers dental service discounts.

Depending on your plan, dental insurance covers a range of dental services at various coverage levels.

Waiting Period

You will not have to wait until the discounts take effect with a dental savings plan. But if you opt for dental insurance, you may have to wait for coverage for several procedures.

Deductibles

The deductible is the amount you must pay before your dental coverage takes over.

Unlike dental insurance, there are no deductibles on a dental savings account, but you make discounted payments for the services.

Annual Limits

Maximum coverage levels may apply to dental insurance. What the maximum coverage is will depend on the plan you take. There are no annual limits on dental savings plans.

In-Network Requirements and Limitations

Dental savings plans partner with networks of dental service providers. These medical professionals offer discounts on various processes and procedures. Members must use the network to benefit from the discounts offered.

Though some dental insurance companies demand the use of in-network dentists, dental preferred provider organization PPO plans do not require members to use designated practices. 

Average Costs

On average, dental savings plans cost considerably less than dental insurance. Still, the returns are also lower, so you must weigh your dental healthcare needs against your budget. If you opt for the dental savings plan, you could pay more for unforeseen dental emergencies. If, however, your dental needs are preventative and routine, a dental savings plan could save you money.

How to Choose Between a Dental Savings Plan or Dental Insurance Plan

You don’t have to pay for dental treatment all by yourself. Here’s a guide to help you choose between a dental savings plan and dental insurance.

Choosing a Dental Savings Plan

Consider the following when shopping for a dental savings plan:

Saving percentages: Dental savings plans offer a range of savings for different dental procedures. Understand what discounts are offered and choose the plan that best suits your needs.

Covered treatments: Dental savings plans will provide a list of covered treatments. Make sure that the treatments you need are covered by the plan you choose.

Premium prices: Ensure that the discounts justify the price you’ll pay for your plan.

Choosing Dental Insurance

You must understand the conditions below before signing a dental insurance contract: 

Waiting periods: Most insurance plans have a waiting period for treatment coverage of procedures like root canals and cavity repair. Know when your coverage kicks in to avoid expensive mistakes.

Deductibles: Choose a plan with a deductible you can afford.

Plan maximums: All dental insurance plans have a maximum coverage level. Choose the highest maximum level to make the most of your dental insurance.

Find a suitable dental insurance company from the table of the top providers below.

Choose the Best Dental Plan for Your Needs

A dental savings plan versus dental insurance is a personal choice. It’s a choice you’ll make after considering what’s offered and weighing it against your dental healthcare needs and budget. A dental savings plan is cheaper than dental insurance, but dental savings do not provide full insurance coverage. If you are likely to need expensive procedures, dental insurance may be the better option for you. Take the terms and conditions into account and get help for the procedures you need, when you need them.

Frequently Asked Questions