Hi EnLifers! So, this week’s post is about something my husband and I debate over each year – whether we should buy dental insurance. The intention is to have it in case we need to have any major work done outside of the preventive cleanings and x-rays that our medical insurance provides. So what do you do? Each year, I’ve done the math to see which would make more financial sense and I’ll share my process and an example here.
- Check with the dental provider to see what dental plans they accept. Ours only accepted two, so that made it easy.
- Identify the bi-weekly premiums to calculate how much it would cost for the year. In our case, I’m looking at family plans since we have children, so those prices will be reflected in the example.
- Think of any dental procedures you predict you will need. A little secret, I’m not the best at oral health though I’ve gotten better over the years, so I count on the possibility of a cavity or two. But think crowns, periodontal cleanings etc. Most times, you can even plan your expenses as the dentist will usually inform you that you need something done, so I usually ask for their fee schedule and any discounts they offer for self-pay. In our case, it was for periodontal cleanings and maintenance this past year.
- Find out what the dental insurance company will pay for your identified procedure. This coverage can range from full payment (100%) to a low of 30% of costs. It’s important to take into account the cost to have insurance PLUS the cost of the actual procedure under insurance.
| Insurance Biweekly Cost | Insurance Yearly Cost | Insurance Co-insurance/co-pay for procedure with insurance | Cost of procedure with Insurance | Total Cost with Insurance | Procedure Out of Pocket Cost w/o Insurance | |
| Dental Plan A | $52.35 | $1361 | Plan pays 60%, so out of pocket will be 40% | 631 | $1931 | $1435*includes 10% self-pay discount) |
| Dental Plan B | $34.51 | $897 | Plan pays 55%, so oop will be 45% | 710 | $1608 | $1435 |
- In our case, it was cheaper to pay out of pocket rather than pay for dental insurance in both cases. Now, of course there are other considerations as well. What if you have something else come up that might be covered under insurance? This is quite possible, but hasn’t been an issue for me so far. The other thing that some would point out is the tax savings of the most health plans as they are usually deducted before taxes. A good point, but the way I get around that is using a health savings plan which is also deducted pre-taxes.
So there you have it- a simple way to determine from a strictly financial perspective if you really need dental insurance. However, I totally understand that some people just like having insurance to make them feel more secure, which is understandable. However if you want to take a walk on the wild side…. I’m your girl! (not really, I’m fairly risk averse). In next week’s post, I’ll cover something I found out about this year –dental discount plans! I purchased one and will track throughout the year whether it has been useful or not for our upcoming needs. As usual, continue to find things that bring enjoyment to your life! EnLife!
MK