What are the three basic approaches to dental plans?

The three basic approaches to dental plans commonly recognized within the industry are indemnity plans, preferred provider organizations (PPO), and health maintenance organizations (HMO).

The correct option focuses specifically on Fee for Service, PPO, and Dental Health Maintenance Organization as distinct methods of organizing dental care and reimbursement.

In a Fee for Service model, patients can choose any dentist and are reimbursed according to a set fee schedule, providing flexibility in provider choice. This approach enables employees to receive care from any licensed dentist without needing referrals, making it a traditional model for dental insurance.

PPOs are networks of dentists who have agreed to provide services at reduced rates for certain insurance plans. This option encourages using in-network providers, as patients benefit from lower out-of-pocket costs while maintaining a wider range of choices than an HMO.

Dental Health Maintenance Organizations (DHMO) are similar to regular HMOs in that they typically require members to select a primary dentist and obtain referrals for specialist services, emphasizing preventive care and reducing overall costs through managed care.

The other options either mix up or do not fully represent the common classifications of dental plans. For example, while managed care is relevant, separating out the basic approaches focuses more effectively on the more established models in the industry