Dental insurance covers a percentage of dental care expenses in exchange for a monthly premium. Dental insurance companies separate dental care services and benefits into various categories, and both dental offices and dental insurance firms have established fees for these services. That fee schedule is utilized to facilitate the transaction between the patient, doctor and insurance company.

Note that the industry has recently started offering dental savings or discount plans, which are being marketed as an alternative to traditional dental insurance. Members of dental savings plans pay an annual fee in exchange for access to a network of dentists who perform dental work at lower rates. Discount plans are not insurance.