Dental Work Can Be Expensive. What Financing Options Are Available?

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WSJ Your Money Briefing 7 min 3 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

ReliaQuest Advertiser 0:00
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Why are millions of Americans skipping the dentist due to cost?

Trenae Nuri 0:37
Here's your money briefing for Thursday, November 11th. I'm Trina Neri for The Wall Street Journal, filling in for J.R. Whalen. Big medical bills can be hard to pay for, and that can also include dental expenses.

How does dental insurance fall short for expensive procedures?

Trenae Nuri 0:50
Dental insurance is available, but may not cover the full cost.
Orla McCaffrey 0:53
So dental insurance isn't really insurance. It's kind of just more of like a prepaid benefit. It's a discount that's basically what you're paying for.
Trenae Nuri 1:01
So how can you cover the cost of those pricey dental procedures? We'll talk with our banking and consumer finance reporter, Orla McCaffrey, about some financing options that are available and the risks that come with them. That's after the break.
ReliaQuest Advertiser 1:18
This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation. ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next.

What real-life example shows people turning to medical financing?

ReliaQuest Advertiser 1:40
ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T.com.
Trenae Nuri 1:56
Millions of Americans are skipping the dentist. It's not necessarily because they're scared of those sharp tools, but because of the potential for getting hit with a pricey bill. Even some people who have dental insurance are digging into their savings or taking out personal loans to pay for dental care. WSJ Banking and Consumer Finance reporter Orla McCaffrey is here to explain why that is and some financing options that are available. Hi, Orla. Thanks for being here. Thanks for having me. Orla, can you break this down for us? If people have dental insurance already, why can't they afford dental care costs?
Orla McCaffrey 2:33
Right. So dental insurance isn't really insurance. It's kind of just more of like a prepaid benefit. It's a discount. That's basically what you're paying for. And that's because dental plans have caps on how much they will cover. So it's $1,000 or $2,000 a year. And I think we all know that dental work often costs more than that. So you can't really think of dental insurance the same way you think of medical insurance.
Trenae Nuri 2:55
And you've spoken with some people who are looking for ways of paying for dental care, and they found a potential financial solution. What can you tell us about that?

Why are lenders and BNPL companies targeting dental and medical costs?

Orla McCaffrey 3:05
One of the people I spoke to was Linda Stultz, who is from Northern California. She's 72, and she actually does have some dental benefits under Medicare Advantage, but she wasn't able to find anyone near her that would take those benefits, any dentists. So she found CareCredit, which is a company that basically lends people money to get dental work done, to cover medical expenses, to cover vet bills. And if they can pay it off in a given amount of time, six, 12, 24 months, and they don't pay any interest. If they can't, then they pay a pretty high APR, about 27% in Linda's case. So that's the option she went with because she had no other way to afford dental work. And that seems like it's an option more Americans will have to consider because insurance just doesn't cover things.
Trenae Nuri 3:48
Now, if this wasn't an option, how was Linda going to pay for that dental work?
Orla McCaffrey 3:53
If she hadn't found out about CareCredit, she initially found out about it, she was taking her cat to the vet. If she hadn't done it, she was considering selling household items. She told me she might go and try to find a part-time job that she's able to do, just anything to kind of increase her cash flow so she could afford this treatment, which was a crown that would cost $1,100.

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