A predetermined amount a beneficiary must pay for covered dental services before the insurance plan begins to contribute toward the cost. This amount represents the initial financial responsibility of the insured party. For instance, if an individual’s plan has a $100 amount, that individual will need to pay $100 out-of-pocket for covered services before the insurer starts covering a portion of the expenses.
This mechanism plays a vital role in managing the costs associated with dental care. It helps keep premium prices lower by sharing the financial burden between the insurance company and the beneficiary. Historically, such cost-sharing arrangements have become increasingly common as healthcare costs, including those for dental treatments, have risen. They encourage patients to utilize services responsibly and prevent unnecessary claims, contributing to the overall sustainability of the dental insurance system.
