What’s the difference between dental insurance and dental discount plans?

What’s the difference between dental insurance and dental discount plans?

Dental insurance and dental discount plans can both be useful in terms of reducing your total dental costs, but they vary significantly in terms of the benefits you get and how much you pay for the coverage.

How does dental insurance work?

Dental insurance plans have a monthly premium, often have a deductible, copays and/or coinsurance, and will pay for covered services until the policy’s annual benefit maximum – typically between $1,000 and $2,000 – is reached.¹

Learn more about how dental insurance works.

How do dental discount plans work?

Dental discount plans differ from dental insurance mainly because they DON'T pay any dental expenses for you. Instead, they provide discounted prices from participating dentists, there is a membership fee that varies from one plan to another.

Because dental discount plans are simply providing a discount rather than paying claims, there are generally no deductibles, no waiting periods, and no annual benefit maximums. Typical discounts range from 10 to 60% for normal dental work, as long as you use a dentist who participates in the discount plan. ²

If you know you’re going to need extensive dental work in the near future, a dental insurance plan with benefit caps and waiting periods might not provide much help. But a dental discount plan could save you significantly more than the cost of its membership fees, particularly if you need several dental procedures during the year. But it's important to keep in mind that even with a dental discount plan, you'll still pay a significant amount for dental work, particularly if you need extensive work done.

If you’re considering a discount dental plan, contact some of the dentists in the network and discuss actual charges with them to determine how much you’ll save by using the plan.

Are dental discount plans cheaper than dental insurance plans?

An average dental insurance policy for a single person will typically cost between $20 and $50 per month in premiums,³ while an average dental discount plan will have an annual membership fee of about $150,⁴ which works out to an average of about $12.50/month.

So in general, the membership fees for a dental discount plan will tend to be lower than the premiums for a dental insurance plan. But this varies by plan.

For example, depending on where you live, you may find that there are dental insurance policies available in the health insurance Marketplace for less than $10/month for a single person.⁵ (In most states, you can only purchase a Marketplace dental policy if you’re also purchasing a Marketplace health insurance policy.)

How else can I get dental discounts?

Some dental discounts can be obtained simply by asking for them. For those who don’t already have a dentist, free exams and x-rays may be offered to new patients.

And dental practices are increasingly offering in-house membership plans, which provide various benefits and discounts to patients who pay an annual fee.⁶ You can ask your dentist whether they offer a membership plan and if so, how much it costs and what benefits you’ll receive if you join.

Reduced-cost dental care is also available at dental schools, and many communities have charity dental programs available for low-income patients. Shop around for discounts before obtaining dental care, even if you don’t have any sort of dental coverage.