Dental Membership Plans vs. Traditional Insurance: Which is Right for Your Practice?

Deciding on Dental Membership Plans vs. Traditional Insurance can often be a bit tricky.

Here, we break down the pros and cons to help you make a choice that best suits your practice’s long-term goals.

Traditional Dental Insurance

Most people have a history with traditional insurance, which comes with its challenges. However, let’s look at the advantages it offers dental practices.

Pros of Traditional Insurance

Familiarity: Patients know what insurance is, and many feel comfortable with its structure. They often like the idea of paying a regular premium and having the coverage there when they need it.

Immediate Patient Pool: Partnering with insurance companies can bring in a steady stream of new patients who are searching for in-network providers.


High Perceived Value: Many patients feel that insurance equals security and value, especially if they already have it through their employer.

Cons of Traditional Insurance

Limited Revenue: Almost all insurance companies have fee schedules and reimbursements that have been declining in real terms for many years. It’s hard enough for dental practices to be profitable, and it’s even harder with insured patients.  

Paperwork and Approvals: Insurance requires paperwork,  and authorizations that can stretch out the time it takes to get paid. Valuable administrative time is often wasted trying to properly manage  the claims process.

Unpredictable Reimbursements: Insurance reimbursements can vary, creating a revenue flow that’s inconsistent and difficult to predict, especially if a claim is denied or delayed

Dental Membership Plans: The Flexible Alternative

Dental membership plans have risen in popularity as an alternative to traditional insurance. These plans let practices offer patients affordable care directly . Patients usually  pay a predetermined monthly or annual fee for a bundle of preventive care services, which can be customized to meet their specific needs. In addition, membership plans also include a discount off restorative treatment.

Pros of Dental Membership Plans

Predictable Revenue: Membership plans give practices the chance to collect payments directly from patients on a set schedule, which provides a steady and predictable stream of revenue that goes a long way towards helping to balance the practice’s cash flow.

Increased Patient Retention: Most often, patients who are on membership plans will stick around longer because they’re committed to using the services they’re paying for, which boosts patient loyalty and improves retention.

Full Control of Care and Pricing: Unlike insurance, membership plans are completely within the control of the practice. You decide what’s included, set your pricing, and structure the services to align with your patients’ needs and your practice’s financial goals.

Better Accessibility for Patients: Membership plans can make dental care accessible for patients who don’t have traditional insurance. Since there’s no third-party involvement, the costs are often clearer and more affordable.

Cons of Dental Membership Plans

Perceived Value: Some patients might still feel hesitant, thinking insurance offers better “protection” than a membership plan, especially if they’ve been using traditional insurance for years.

Time Investment for Setup and Management: Setting up and managing a membership plan requires an initial investment of time and planning, but with the right software, this is a one-time hurdle. And with the right partner, the collaboration makes the process seamless.

Why Dental Membership Plans Win on Patient Retention and Revenue

When looking at dental membership plans vs. traditional insurance, one of the standout benefits of dental membership plans is patient retention. When patients are on a membership plan, they’re more likely to stay loyal to your practice.  This is especially true if you’ve tailored the plan with benefits they value most—such as biannual cleanings, discounts on treatments, or even perks for family members.

Membership plans also provide a much-needed degree of predictability  of revenue and collections.  With traditional insurance, practices are at the mercy of reimbursement rates and payment schedules, which can lead to gaps in cash flow. On the other hand, membership plans provide a more reliable monthly or annual income, which helps practice owners plan better and manage their ever-changing finances with confidence.

How Plan Forward Makes Membership Management Easier

Running a membership plan might sound daunting, but  Plan Forward can help. Plan Forward’s software conveniently and effortlessly takes away any guesswork from managing membership plans to help practices create a seamless and hassle-free experience for patients and staff alike – for the long term.

Streamlined Plan Setup and Management

Plan Forward’s team works with yours to design 100% custom plans with services that will appeal to your patient base.    

Plan Forward’s integrated platform makes it easy to manage your membership plans, enroll and manage patients. In sum, the dashboard automates all the tasks, including payment processing, patient notifications and auto-renewals.. With Plan Forward, you can monitor membership renewals, track payments, and send automatic reminders—all in one place.

Effective Patient Communication

Plan Forward makes it simple to automate patient communication. Payment update links and renewal reminders ensure that the practice maintains the membership payments without a lapse.

Insights on production and visits

Now, you can easily determine the ROI on membership, by comparing production & visits for members against cash-pay patients. With PMS integration, Plan Forward can access the data to compile the data you need to determine if membership is working for your practice.

Check out this video link: Plan Forward Explained 

Ready to Get Started?

Say hello to a new way of providing affordable dental care and building up your patient loyalty—try Plan Forward and start reaping the benefits today!

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