| Traditional Indemnity Dental Insurance | Professional Provider Organization (PPO) | Health Maintenance Organization (HMO) |
These plans were the original dental benefit plans that have provided good dental coverage for decades. This is the best of all 3 plans. | These organizations provide dentistry through contracted dentists who agree to accept lower fees. | Minimum dentistry is provided through contracted dentists who agree to small monthly capitation payments for each employee/patient regardless if services are performed or not. |
Patient's Freedom of Choice | Patients choose their own dentist. (Greatest freedom of choice) | Patients have more freedom of choice than with an HMO, but pay more for care from a non-preferred provider. | Patients are restricted to a list of designated providers. (Least freedom of choice) |
Benefits | The levels and coverage are defined by a contract, and generally provide more comprehensive services than PPOs and HMOs. | Enrolled members receive services at a reduced cost when the services are delivered by a preferred provider. | Enrolled members receive minimum comprehensive services when care is provided by a plan provider. |
Utilization | May or may not be controlled by the carrier. | Less controlled than an HMO. | Providers receive a financial incentive to control utilization. |
Payment to the Providing Dentist | Dentists are paid (indemnified) for services by the insurance company and the patients. | Dentists are paid on the basis of a discounted fee schedule. | Dentists are paid a small dollar amount per member per month regardless of services rendered. |
Cost to patient | Usually the most expensive. | Less expensive than an indemnity plan. | Least expensive. |