Question:
What's the lowdown on dental plans? It seems the one's that don't pay the
dentist are a scam.
Answer:
The "lowdown" on dental plans is that you cannot buy a plan, as an
individual, which will pay back as much as you pay in premiums. Plans like
this ONLY work in large groups where the administrator can predict that
30-50% will never use the plan. As far as whether the plan pays the dental
office or sends the check to the patient,,,,,,,,,,, that has no bearing on
the plan's quality.
Don't some plans pay the dentist zero, it's just that they prearrage a fee
list and the dentist benefits by getting new patients? I also heard they can
make money off referrals to specialists as well. any truth in this? It seems
it would be hard to make a profit at the rates I see stated in the American
Dental Plan price list, for example.
That plan pays less than the combined costs of sterilizing the instruments
and room plus one staff person in the room with you. What are you prepared
to sacrifice to allow the practice to participate in this plan and not go
out of business??
If a dental practice gained 200 new patients each month, but lost $30 on
every one they treated, how long would the practice still be in business?
And,, there is no such thing as getting paid to make referrals. Some of the
HMO/DMO/PPO plans will require all referrals stay "in-network" to allow
payment. Some HMO plans actually take the money to pay the specialist from
the money they would have paid the "gate-keeper".
