How Dental Savings Plans Can Lower Your Dental Costs

Quick answer

• Dental savings plans offer discounts on dental care, not insurance.
• You pay an annual fee to access a network of dentists offering reduced rates.
• Plans can be a good option if you have limited dental insurance or need significant work.
• Costs vary by plan, but typically include an annual membership fee and out-of-pocket dental expenses.
• It’s crucial to compare plans and check if your preferred dentist is in-network.
• These plans are best for predictable, routine care or specific procedures, not comprehensive coverage.

Who this is for

• Individuals or families without dental insurance looking for more affordable care.
• People who have dental insurance but find their coverage insufficient for their needs.
• Those planning to undergo specific dental procedures and want to reduce out-of-pocket costs.

What to check first (before you act)

Your Dental Needs and Timeline

Before considering a dental savings plan, assess what dental work you anticipate needing. Is it routine check-ups and cleanings, or do you foresee needing more extensive procedures like crowns, root canals, or orthodontics? Also, consider your timeline. Are you looking for immediate savings, or is this a long-term strategy for dental health?

Your Current Cash Flow

Evaluate your current financial situation. Can you afford the annual membership fee for a dental savings plan? More importantly, can you comfortably cover the out-of-pocket costs for dental services, even at a discounted rate? Understanding your cash flow will help determine if a plan is a financially sound decision for you.

Your Emergency Fund

Ensure you have a solid emergency fund in place. Dental emergencies can be costly and unexpected. A dental savings plan can help manage routine and planned care costs, but it’s not a substitute for a robust emergency fund that can cover unforeseen medical or dental crises.

Existing Debt and Interest Rates

If you have high-interest debt, such as credit card balances, it’s generally more financially prudent to prioritize paying off that debt before investing in a dental savings plan. The interest you pay on debt often outweighs the potential savings from a dental plan.

Potential Credit Impact

While dental savings plans themselves typically do not impact your credit score, the way you manage the payments for your dental care does. Late payments or defaults on payments for services rendered can potentially affect your credit if they are sent to collections.

Step-by-step (how a dental savings plan works)

1. Assess your dental needs.

What to do: List all dental procedures you anticipate needing in the next year, from routine cleanings to potential major work.
What “good” looks like: A clear understanding of your dental care requirements.
Common mistake: Underestimating future dental needs, leading to a plan that doesn’t cover your actual expenses. Avoid this by consulting your dentist for an honest assessment.

2. Research dental savings plan providers.

What to do: Look for reputable companies offering dental savings plans. Read reviews and compare their offerings.
What “good” looks like: A curated list of potential plan providers.
Common mistake: Choosing the first plan you see without due diligence. Avoid this by comparing at least three different providers.

3. Understand the plan’s network.

What to do: Check if your current dentist is part of the plan’s network. If not, identify dentists in the network near you.
What “good” looks like: Confirmation that your preferred dentist is in-network, or a list of acceptable alternatives.
Common mistake: Assuming your dentist is included. Avoid this by directly verifying with the plan provider and your dentist’s office.

4. Compare plan costs and benefits.

What to do: Note the annual membership fee, any enrollment fees, and the specific discounts offered for various procedures.
What “good” looks like: A clear breakdown of costs and savings for your anticipated dental work.
Common mistake: Focusing only on the annual fee and ignoring the discount percentages. Avoid this by calculating potential savings for your specific needs.

5. Read the fine print.

What to do: Carefully review the plan’s terms and conditions, including waiting periods, exclusions, and renewal policies.
What “good” looks like: A complete understanding of all plan rules and limitations.
Common mistake: Overlooking exclusions for pre-existing conditions or specific procedures. Avoid this by asking for clarification on any unclear terms.

6. Enroll in a plan.

What to do: Once you’ve chosen a plan, complete the enrollment process and pay the annual fee.
What “good” looks like: Confirmation of your active membership.
Common mistake: Delaying enrollment, which could mean missing out on immediate savings. Avoid this by enrolling as soon as you’ve made your decision.

7. Schedule your dental appointments.

What to do: Contact your dentist’s office and inform them you are a member of a specific dental savings plan.
What “good” looks like: Appointments booked with your dentist.
Common mistake: Forgetting to mention your plan when booking. Avoid this by stating your plan membership upfront when scheduling.

8. Present your membership card.

What to do: Bring your dental savings plan membership card or digital ID to your appointment.
What “good” looks like: The dental office recognizes your membership and applies the discounts.
Common mistake: Arriving without proof of membership. Avoid this by keeping your card accessible.

9. Pay for services.

What to do: Pay your portion of the dental bill directly to the dentist’s office at the time of service.
What “good” looks like: You pay the discounted rate.
Common mistake: Expecting the plan to pay the dentist directly. Avoid this by understanding that you pay the provider, and the plan offers a discount on that payment.

10. Review your savings.

What to do: Keep track of your dental expenses and compare them to what you would have paid without the plan.
What “good” looks like: Evidence that the plan is saving you money.
Common mistake: Not tracking savings, leading to uncertainty about the plan’s value. Avoid this by keeping receipts and comparing them to estimated full costs.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not verifying dentist participation	You may have to pay full price or find a new dentist.	Always confirm your dentist is in-network before enrolling.
Overlooking plan exclusions	You’ll pay out-of-pocket for excluded services, negating savings.	Read the fine print carefully for any limitations.
Assuming it’s dental insurance	You might not understand coverage limits or claim processes.	Understand that it’s a discount program, not insurance.
Not comparing enough plans	You could miss out on better discounts or a more suitable network.	Research and compare at least 2-3 different plans.
Paying for services before confirming discounts	You might overpay if discounts aren’t applied correctly.	Confirm the discount amount with the dental office before payment.
Ignoring the annual fee	The fee can negate savings if you don’t use the plan enough.	Calculate if your expected dental costs justify the annual membership cost.
Not checking for waiting periods	You might not be able to use the plan for immediate needs.	Be aware of any waiting periods for specific procedures.
Relying solely on the plan for all dental needs	You may still face significant out-of-pocket costs for complex treatments.	Use the plan as a supplement, not a sole solution, and maintain an emergency fund.
Not renewing the plan	You lose access to discounted rates and may need to re-enroll later.	Keep track of renewal dates to ensure continuous savings.
Assuming all dentists offer the same discounts	Discount percentages can vary significantly between dentists.	Check the specific discount rates for procedures you need.

Decision rules (simple if/then)

• If you have no dental insurance and need routine care, then consider a dental savings plan because it can provide discounts on basic services.
• If your current dental insurance has high deductibles or low annual maximums, then a dental savings plan might supplement your coverage for additional savings on procedures not fully covered.
• If you have a preferred dentist, then check if they are in-network with the dental savings plan before enrolling, because out-of-network dentists will not offer discounts.
• If you need significant dental work like crowns or root canals, then compare the plan’s discount percentages for these procedures to the potential cost, because savings can be substantial.
• If your primary goal is preventative care, then a plan with good discounts on cleanings and check-ups is ideal because these are typically covered well.
• If you have high-interest debt, then prioritize paying off that debt before investing in a dental savings plan because the interest saved will likely exceed dental discounts.
• If you are prone to dental emergencies, then ensure you have a robust emergency fund, because dental savings plans are not designed for unexpected, catastrophic events.
• If you are comparing plans, then look beyond just the annual fee to the actual discount percentages on the services you’ll use, because a lower fee with poor discounts is not a good deal.
• If you are enrolling, then read the terms and conditions carefully, because understanding exclusions and limitations is crucial for managing expectations.
• If you are unsure about the value, then calculate your estimated annual dental expenses and compare them to the plan’s total cost (fee + estimated out-of-pocket), because this will show your potential net savings.
• If you have employer-sponsored dental insurance, then check if a dental savings plan can be used in conjunction with it, although many plans do not allow dual use.
• If you are considering a plan for cosmetic dentistry, then verify if such procedures are covered, as many plans focus on medically necessary treatments.

FAQ

What is a dental savings plan?

A dental savings plan is a membership program that offers discounts on dental care services when you visit participating dentists. You pay an annual fee to access these reduced rates.

How are dental savings plans different from dental insurance?

Dental insurance typically involves premiums, deductibles, copayments, and annual maximums. Dental savings plans have an annual membership fee and offer direct discounts on services from in-network dentists, with no deductibles or annual limits on savings.

Can I use a dental savings plan with my existing dental insurance?

Generally, you cannot use a dental savings plan in conjunction with dental insurance for the same service. You must choose one or the other for a particular dental visit or procedure.

Are there waiting periods for dental savings plans?

Many dental savings plans do not have waiting periods for most services, allowing you to use your discounts almost immediately after enrollment. However, some plans may have waiting periods for specific procedures.

What happens if my dentist is not in the plan’s network?

If your dentist is not in the network, you will not receive the discounted rates offered by the dental savings plan. You would either need to find a new dentist within the network or pay your dentist’s standard fees.

How much can I expect to save with a dental savings plan?

Savings vary depending on the plan and the services received, but discounts can range from 10% to 50% on various procedures. It’s important to check the specific discount percentages for the services you anticipate needing.

Are there any limits to how much I can save?

Unlike dental insurance, which often has annual maximums, dental savings plans usually have no limit on the total amount you can save through discounts, as long as you use in-network providers.

What types of dental services are typically covered?

Dental savings plans typically offer discounts on a wide range of services, including preventive care (cleanings, exams), restorative care (fillings, crowns), and sometimes cosmetic procedures. However, coverage can vary by plan.

What this page does NOT cover (and where to go next)

• Specific plan costs, discount percentages, or enrollment deadlines. You should check with individual providers for current details.
• Legal or tax implications of dental savings plans. Consult a tax professional for personalized advice.
• How to negotiate dental bills directly with providers outside of a plan.
• The process of filing claims for dental insurance.
• Detailed comparisons of dental insurance versus dental savings plans for every possible scenario.