In other words, you are not required to pay income tax on the dental plan component of your compensation package. It is important to remember that dental plan coverage is not a form of insurance. Actually, it is an economic benefit that your employer contracts with a plan carrier to provide on your behalf. It is also important to remember that you are a partner in your oral health, and that treatment and care decisions should be made by you and your dentist based on your actual needs, not on your dental plan coverage. Your dental plan is not a treatment plan.
Dental plans provide employees with prepaid coverage for a variety of dental procedures.
Dental benefit plans are contracts, and are usually written in legal terms that are difficult to understand. In most cases, the plan carrier or your employer will be able to provide a written explanation of your plan in plain language. This is a good start, but remember that this explanation is not the actual contract. If you're not certain about some points, ask your employer or the plan carrier for clarification. Your actual coverage will depend on how much your employer or union has agreed to pay toward the costs of your dental care, and the specific benefits that your employer or union has agreed to provide.