American Dental Plan was founded in 1978 and is Arizona's oldest voluntary dental benefit plan. It is based upon the reduced fee concept which, we believe, is the most cost effective method of obtaining dental benefits. This means that rather than paying regular monthly premiums to an insurance company, (and hoping that the benefits you receive will exceed the amount of premiums you have paid), your membership fee gives you access to a statewide dental provider network offering you a reduced fee for the dental services you actually receive. Many times your first visit to the dentist saves you more than the price of your yearly membership fee.
Indemnity: The oldest form of traditional insurance. It is socialistic in nature; "premiums from the many pay for the claims of the few." Usually, indemnity insurance is available only for groups. This is because the loss ratios would be too extreme to issue on an individual basis. People would purchase insurance for a specific claim and therefore insurance companies would go broke paying claims.
Monthly premiums range $50 to $60 per month for family coverage. There are usually waiting periods, deductibles and limits to coverage. Dentists are reimbursed from the insurance company based upon the dentists usual and customary charges. (PPO plans put a limit on the maximum fee for reimbursement.) Most all dentists will accept indemnity insurance plans because they are able to charge full price!
Keep in mind. Insurance was designed to offer financial assistance in paying bills. It is not benevolent in nature and the insurance company looks to make a profit. They will collect more money in premiums then they will pay in claims. If a profit is lost due to higher claims, premiums are increased and/or benefits reduced.
Prepaid or HMO Dental Plans: Prepaid dental plans were widely introduced in Arizona in the mid 1970's. Again, these plans were designed for group coverage. This plan design requires the dentist to receive a portion of your monthly premium, called capitation, to pay for various services such as free routine cleanings, examinations, x-rays, fillings, fluoride and extractions. Fees for other dental services are reduced and paid by the patient at time of service. In order for a dentist to participate in the plan, he/she must agree to accept the capitation as payment for the free services and the reduced fees for other dental services.
However, experience is showing that dentists are unable to provide these free services for the capitation received. Treatment is sometimes delayed in order for the dentist to receive additional capitation. Recently, prepaid plans have increased monthly premiums and reduced benefits by charging a small co-payment for services that were once considered free. Monthly costs for family coverage range between $20 to $27 per month.
Reduced Fee Dental Plans: As a spin off from prepaid plans, reduced fee plans also took shape in the mid 1970's. Since there is no reimbursement from any third party or capitation paid to the dentist, the cost of administration is greatly reduced. In essence, reduced fee dental plans are the advertising and marketing for participating dentists. The dentist agrees to reduce his/her fee for dental services in exchange for a steady stream of new patients. The dentist's overhead is greatly reduced since there are no advertising fees, no added paperwork for submitting claims, no receivables, and no limits to coverage. Payment for dental services is immediate and the dentist has more time to treat patients since the plan is providing the advertising services.
Unlike the indemnity and prepaid plans, reduced fee dental plan are not regulated by the Department of Insurance or any other governmental agency. Therefore, any person wishing to purchase a reduced fee plan should be careful and understand exactly what they are buying. (Recently, multi-level marketing organizations and credit card companies have entered the reduced fee dental plan marketplace. Many persons representing these newly formed plans have no dental or healthcare experiences. They have no knowledge of dentistry and therefore could make claims that maybe untrue in order to sell their newly formed dental plans. BUYERS BEWARE!)
American Dental Plan: American Dental Plan is considered a reduced fee membership benefit plan. Founded in 1978, ADP is Arizona's oldest voluntary dental plan. Currently, membership exceeds 35,000 individuals. There are nearly 275 independent participating dentists throughout Arizona, and includes specialty dentists such as oral surgeons, endodontists, periodontists, prosthodontists and orthodontists. Memberships are priced as follows:
| Individual | $ 44 per year |
| 2 Persons | $ 64 per year |
| Entire Family | $ 84 per year |
The "Plus" Plan is also available which includes the dental benefits described above along with hospital, medical, pharmacy, optical and chiropractic benefits.
American Dental Plan is the best value available for groups and individuals looking for cost effective alternatives to traditional indemnity and prepaid dental plans.
If you experience difficulty requesting the brochures or printing from this website, you may contact the American Dental Plan administrative office at (602) 265-6677 and use our fax-on-demand service. Or, you may speak with a Customer Service Representative Monday-Friday, 8:00am until 3:00pm (MST).