Direct reimbursement dental plans are funded by the employer itself, and is not insurance. In this type of plan, your employer pays for dental visits with its own money rather than paying premiums to an insurance company.
What you pay
After treatment, you pay the dentist in full and give the receipt to your employer. Your employer will reimburse you for all or part of the cost, depending on the specific plan design.
Your company may reimburse 100% of the first $100 of dental costs, such as preventive treatments (cleaning), but a smaller percentage of ongoing dental treatment throughout the year.
Advantages
Direct reimbursement plans do not usually have deductibles (a part of the treatment fee that you would have to pay first). You can choose any dentist you like.
What else to be aware of
Direct reimbursement plans are not regulated by state insurance departments. Waiting periods for benefits sometimes apply, and out-of-pocket expenses are generally higher.
You usually have to pay the dentist in full for any treatment you receive, and then wait for any reimbursement you’re due based on the plan. Dentists are not required to go through the rigorous credentialing process that those who participate in PPO, EPO and DHMO insurance networks are.