With an Indemnity dental insurance plan, the dentists gets paid on a traditional fee for service basis. The way it works is that a monthly premium is paid by the patient or the employer to an insurance carrier, which directly reimburses the dentist for the services he or she provides. The dental insurance company usually pays between 50% to 80% of the dentist’s fees for covered services. The remainder of the bill gets paid by the patient directly to the dentist. Generally these dental plans have a pre determined deductible that the patient must pay before the insurance carrier has to pay their portion
A direct reimbursement plan is a dental insurance plan whereby your employer funds the entire plan and allows you to use any dentists that you want so there are no network or out of network dentist that you have to use. The way it works with a direct reimbursement plan is that you get reimbursed for the money you spent on your dental work – which is not limited to specific treatments. Depending on your employer, some plans will allow you to pay first and get reimbursed after the fact or some will let the employer to pay the dentist directly. Personally I like to pay with my credit card, get the points and get reimbursed by my company.