Indemnity dental insurance is also referred to as traditional insurance or fee for service dental plan and takes place through pay for service arrangement (Shashikiran, 2015). The major benefit of indemnity insurance is that it gives the patients an opportunity to receive the service of the dentist of their choice. This form of insurance requires the patients to pay anchored in pre-computed standard, routine, and reasonable costs. In most instances, the patients are required to make an extra out-of-pocket payment. An indemnity plan normally has a yearly utmost benefit, characteristically approximately 2,000 dollars. Patients under indemnity insurance are required to cater for a proportion of the charges upfront with many providers demanding full payment and reimbursement by the insurance company later.
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Over and above giving the patients the chance to visit the dentists they prefer, indemnity insurance is beneficial over other cheaper alternatives, for instance, Dental Health Maintenance Organization (DHMO), in that it has a lower monthly premium (Shashikiran, 2015). It offers the best choice for individuals who wish to retain their present dentists, travel regularly, or do not have providers from other insurance companies who are suitably placed. Nevertheless, one of the drawbacks linked to the indemnity plan is its demand for upfront payment by the patients who then have to wait for reimbursement. This is coupled with the fact that the plan does not have a board of providers, which leaves patients vulnerable to high charges. In this regard, it is evident that though indemnity insurance could profit dentists since they get instant pay and do not steer the claims’ course, it could greatly disadvantage the patients.
The choice of the best health insurance may currently be devastating due to the existence of many alternatives (Kuthy, Reynolds, McKernan, & Damiano, 2016). Though there is no perfect plan, some could be perceived better than others with respect to the health requirements and budget. The difference among the existing health plans lies in the ease of accessing the required services, the amount of money charged, and the approach of payment. Nearly every plan nowadays has the means of decreasing the needless use of medical care while also maintaining the costs incurred low. Though such factors might influence how effortless the patients obtain the care they want, they do not affect the ease of accessing the care needed. Dental professionals and other physicians support indemnity plan as suitable insurance because it offers the patients flexibility while ensuring that dentists get paid upfront devoid of having to follow the process of insurance claims.
Indemnity plans offer more satisfactory levels in terms of convenience when judged against other plans. In addition, physicians affirm that indemnity insurance is better than managed care plans when considering the selection of providers, out-of-pocket charges for the offered services, and the means of paying the bills. Indemnity insurance characteristically provides more choice of physicians (encompassing professionals), health facilities, and other caregivers when compared to the managed care plan (Kuthy et al., 2016). Patients under indemnity insurance are required to make their payment just after the reception of the bill while managed care plan necessitates prior agreement with some physicians or health facilities to obtain a scope of services at a decreased cost. In this regard, patients in a managed care plan will have lesser out-of-pocket outlays and paperwork but a wider selection of health care professionals in indemnity insurance.
Shashikiran, N. D. (2015). Dental insurance: Boulevard for stakeholders. Journal of Indian Society of Pedodontics and Preventive Dentistry, 33(4), 263-265.
Kuthy, R. A., Reynolds, J. C., McKernan, S. C., & Damiano, P. C. (2016). Rise of managed care in the USA: Lessons for dentistry. Current Oral Health Reports, 3(3), 131-139.