4 THE ADA PRACTICAL GUIDE TO EXPERT BUSINESS STRATEGIES COMMERCIAL DENTAL BENEFITS BY PLAN TYPE Major Types of Plans There are several types of dental insurance plans. These plans are administered using different rules and are subject to different restrictions. The major dental plan types and their relative positions as to market share are listed below. Direct Reimbursement Plans A direct reimbursement plan is a dental insurance plan that is typically funded by the patient’s employer and allows the patient to choose any dentist. With a direct reimbursement plan, the patient or the dentist is reimbursed for dental expenses. This reimbursement is not limited to specific treatments. The patient can choose what treatment is recommended by the dentist. The only limitation of these plans is the amount available for treatment. For instance, they might pay 100 percent of the first $500 of expenses and then 50 percent of the next $1,000. This type of plan makes up less than one percent of the dental plans in existence today. Carrier Administered Discount Dental Plans In this type of plan, the patient pays a monthly or annual enrollment fee to a discount dental plan administrator. The fee varies from plan to plan. The patient is then provided access to a network of dentists who have agreed to deliver care at reduced fees. In many cases, dentists are enrolled through an existing insurance plan’s preferred provider network. With carrier-administered discount dental plans, there are no insurance claims filed and there are no benefits paid. This type of plan grew to ten percent of the market in 2007-2008, but has been shrinking from its prime. Discount dental plans now make up six percent of all dental plans sold.