Over the course of the past decade, 1 in 4 Americans delayed seeking dental treatment because the cost was too high. There’s a good chance that your dental practice has a wide variety of patients that fit that statistic. Due to the high cost of high-quality dental care, many patients are turning to Discount Dental Plans (DDPs) and Dental Savings Plans (DSPs).
Discount Dental Plans and Dental Savings Plans
DDPs and DSPs can be used instead of dental insurance or alongside dental insurance policies. Members of these savings plans can save 10-60% on dental care depending on what the procedure is. Many of the patients who opt for dental savings plans do not have insurance, need urgent dental care and costly procedures or have advanced dental issues that exhaust insurance maximums.
DDPs and DSPs do not have annual spending limits and cost about 50% of what dental insurance would. These plans also offer the added benefit of immediate coverage, with most plans activating within 3 business days. In contrast, most insurance companies enforce a 6-18 month waiting period before shelling out for most costly procedures.
Why Are DDPs and DSPs Growing in Popularity?
While dental insurance does a great job at reducing the cost of care for many patients, many policies restrict coverage to a certain dollar amount annually. While the market caps of $1,000-$1,500 have remained stagnant over the past few decades, the cost of dental care has continued to rise. With a single crown ranging in price from $1,400-$1,800, it’s easy to eat up insurance coverage for the year with a single procedure.
Is a Dental Savings Plan Right for Your Practice?
Some practices are branching out and offering their own dental savings plans and discounts to cash-paying patients to grow patient loyalty and attract new patients. However, there is a high risk for dentists considering offering discounts to a large percentage of patients. If you are already operating at high capacity with a number of patients paying cash, providing a DSP might not be worth it. However, an in-house DSP might be an excellent way to promote growth and patient loyalty if you are consistently operating below capacity or working with a number of patients who are not cash-paying.
Understand Dental Savings Plans with APEX
The experts at APEX Reimbursement Specialists can help you to explore the best insurance carrier options for your continued growth and sustained success. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.