Imagine you’ve paid your dental premiums all year and followed every rule to the letter. You’ve used some of your benefits. However, here’s the catch: if you don’t use the remaining benefits before the end of the year, poof. They’re gone. This is the “Use-It-Lose-It” policy, and this might just affect your budget in ways you never considered.
Knowing how annual maximums and deductibles work can save you money and prevent the loss of valuable benefits. We’re going to break down exactly how these elements will affect your finances-especially when tied to this “Use-It-Lose-It” policy-in this blog.
What Is the “Use-It-Lose-It” Policy?
The “Use-It-Lose-It” policy means dental benefits expire at the end of the year. If you don’t use them, they’re lost. Dental insurance usually comes with an annual maximum, which is the most the insurance will pay for your treatments in a year.
When you reach that maximum, the plan covers no more treatments. The deductible, a fixed amount that one pays before your insurance kicks in, also resets every year. Understanding these elements is key to maximizing your benefits.
How Annual Maximums Can Affect Your Dental Costs
An annual maximum is the total amount that your dental insurance will cover in a year. Once you’ve reached your annual maximum, you are responsible for paying out-of-pocket for additional care. This impacts your treatment decisions.
If you are close to your annual maximum, you may want to complete any remaining treatments before the year resets. Otherwise, you will pay full price for services next year. Not using your annual maximum could leave you paying more than necessary for dental procedures.
How Deductibles Work and How They Factor into Your Costs
A deductible is the amount that you pay out of pocket before your insurance covers your treatments. If you’ve already met your deductible, your insurance will pay more of the cost for additional treatments.
However, if you haven’t met your deductible, you will have to pay that deductible before your plan kicks in. By scheduling treatments before the end of the year, you are using your deductible more effectively. You want to maximize its value by addressing dental needs now, rather than waiting until next year.
How to Maximize Your Benefits Before the Year Ends
Be certain to schedule cleanings, exams, and X-rays for preventive care before the end of the year. Most of these services are fully covered and count toward your annual maximum. If you have ongoing treatments, such as fillings or crowns, now is also the perfect time to complete them.
Taking care of treatments now can also help make sure you do not miss out on coverage and minimize out-of-pocket costs in the future.
Why You Should Act Now to Use Your Benefits
Waiting until the last minute often means lost benefits. If you haven’t scheduled your dental care yet, now is the time. By using your benefits before the year ends, you don’t leave any money on the table.
Don’t let unused benefits reset. Maximize your annual maximum and deductible to make sure you’re not paying more out of pocket in the new year. It can lead to increased out-of-pocket costs in the new year due to procrastination.
The “Use-It-Lose-It” policy can considerably affect your dental budget. By knowing how annual maximums and deductibles work, you will get a head start toward making the most of your benefits before they expire.
Don’t let this opportunity slip away. Schedule your dental care now, and wisely use your benefits to your advantage to save money in the process. Take action now and don’t lose what you have paid for.
