Arizona Life and Health Practice Exam

What kind of agreement does a prepaid dental plan typically have with a network of dentists?

1. Pay-per-service basis

2. Accepts an established amount as payment in full for services

3. Discounted rates for services rendered

4. Full reimbursement for services

The correct answer is: Accepts an established amount as payment in full for services

In a prepaid dental plan, the agreement typically involves the dentists accepting an established amount as payment in full for services. This means that rather than charging each patient directly based on the services rendered, participating dentists agree to receive a predetermined fee for the services they provide to members of the prepaid dental plan. This fee structure is designed to encourage the provision of care while managing costs for both the dental practice and the patients enrolled in the plan. This arrangement allows for predictable costs for members, as they will generally know what their out-of-pocket expenses will be, thus facilitating better budgeting for dental care. This structure contrasts with other types of payment arrangements, such as those based on a pay-per-service model or full reimbursement methods, where costs can fluctuate based on the quantity and type of services received.