Question

Which of the following types of dental policies typically pays a portion of usual and customary charges for covered procedures?

1) Indemnity
2) Health Maintenance Organization (HMO)
3) Preferred Provider Organization (PPO)
4) Exclusive Provider Organization (EPO)

Answer 1

Option 1). Indemnity dental insurance plans pay a portion of the usual and customary charges for covered services, functioning on a fee-for-service model, and allow policyholders to choose any dentist, covering a share of the costs after a deductible is met.

Step-by-step explanation:

An indemnity plan is a kind of dental insurance that normally covers a portion of regular and customary costs for procedures that are covered. Dental insurance programs under indemnity frequently function on a fee-for-service model. These plans offer greater freedom in selecting a dentist and reimburse dental expenses up to a certain percentage of the standard and customary fees for the services rendered. In addition to the normal deductible, policyholders may also have to pay a copayment or coinsurance. The insurance usually covers a portion of the cost of the covered services up to the policy's maximum limit after the deductible is paid.