So, why don’t insurance companies pay more for laser treatments?
Procedures are classified by outcome, not technology: Insurance companies care more about the result than the tools used to achieve that result. Whether you use a laser or a traditional handpiece for a filling, the outcome (a filled tooth) is the same, so the reimbursement does not change. Even though lasers can improve patient experience, they don’t necessarily change the medical necessity or effectiveness of the procedure.
Cost control is king: Dental insurance is all about keeping costs down. While lasers are undeniably more expensive to use and maintain, insurance companies focus on covering the most cost-effective treatments. Practices absorb the cost of using this advanced technology because insurers don’t see it as necessary for achieving the desired treatment outcome, meaning no extra payout.
No dedicated CDT codes for lasers: Most procedures involving lasers fall under existing CDT codes that don’t specify the technology used. Without distinct coding for laser treatments, insurance companies are not inclined to offer higher reimbursements. The same old code means the same old payout, whether you use a laser or not.
Seen as elective or premium: Lasers are sometimes viewed as an elective upgrade, similar to how premium materials are thought of in restorative work. Even though lasers can reduce discomfort and healing time, these advantages are seen more as conveniences rather than medically necessary benefits. Because of this, insurance companies are hesitant to pay more for what they perceive as an enhancement rather than a necessity.
Limited adoption and standardization: Lasers, while growing in popularity, aren’t yet the standard across the dental industry. Many practices still rely on traditional methods, and until lasers are more widely adopted and viewed as a standard of care, insurance companies won’t feel pressured to adjust reimbursement rates. They base their payouts on what’s most common and cost-effective, so without widespread use, lasers will continue to be seen as a premium option.
The bottom line: Lasers are great for patients, not for payouts
While laser technology is undoubtedly beneficial—enhancing precision, reducing recovery time, and improving the overall patient experience—it doesn’t yet command higher payouts from insurance companies. For practices, the investment in lasers is all about providing better patient care and differentiating themselves in the market.
Dentists and office managers should communicate the value of laser treatments to patients, emphasizing the clinical and comfort benefits. But understand that these will likely remain out-of-pocket services or premium offerings not fully covered by insurance. In the long run, investing in this technology may not immediately boost your insurance reimbursement rates, but it will help you attract a specific patient demographic willing to invest in cutting-edge care.