Private dental patients are poorly informed and may be overcharged for treatment, the Office of Fair Trading announced this week.
The report by the OFT criticised private dentistry and said the market "is not working well for consumers". In some cases almost identical treatments were charged at rates four times higher in some parts of the country.
The OFT report highlights the increased use of savings schemes (often referred to as capitation schemes) to pay for the rising cost of dental care, with 58% of dentists receiving payment from capitation, insurance or other types of policy.
But the report doesn't say whether these are good or bad value for customers.
Capitation schemes allow for regular fixed monthly payments according to the anticipated level of treatment required following an initial examination.
They allow consumers to budget for the cost of treatment over a contracted period. And the amount patients pay doesn't vary with the level of treatment given (except for certain expensive items, such as dental appliances).
Denplan, with 1.2m patients, is the UK's largest provider of dental healthcare plans with just under a third of the market. Hospital Savings Association has the second largest share with 21%. And Boots is third with 8%.
Customers of Denplan are typically charged £15 a month for cover. The treatment available is routine and preventative. All check-ups, x-rays and necessary fillings are covered. As are all hygienist visits and routine extractions.
It will also cover major restorative care like crowns, bridges and dentures. But it will not cover laboratory fees, such as making a bridge, or cosmetic treatment, like teeth whitening.
After visiting a dentist, patients will be put on a plan which has five categories of oral health. Patients in category A pay the least (as their teeth are in good condition) at £7 a month. Patients in category E pay the most, between £25 to £35 a month.
There is also an insurance element which gives worldwide emergency cover and up to £10,000 accident insurance a year. Oral cancer cover is also included. Patients can see a dentist as many times a year according to need - but must be scheduled by a dentist.
The alternative to a savings plan is insurance. Private dental insurance contributes towards the cost of routine treatment, dental emergencies and serious dental problems. But it will not cover the entire cost of the treatment. For example a patient on Boots Level 1 Private care scheme wanting a crown will be entitled to £130 cash-back.
A spokesperson for Boots said: "This may not cover all costs for patients using private dentists in London. They may have to go for a higher level of cover which costs more per month."
Depending on which scheme you choose, you usually need to enroll three to six months prior to using the plan. But, says Richard Fells from Medisure, there will be no exclusions or premium loading according to the condition of teeth like there is in capitation schemes.
Second on the best buy table from Moneysupermarket.com, Medisure typically pays out on a cash replacement basis. The Bronze cover will give you £15 for a routine check-up. An NHS check-up costs £5.32, whereas a private check-up, at the high end of the market, can be as much as £40, leaving patients a bill of £25.
Medisure pays out between £6 to £10 per tooth, per filling. This would cover the cost of an £5.64 NHS filling. But at the high end of the market it would cost £54.25 - which leaves the patient shelling out £40.
