Web3 is shaking up many industries, and dental insurance is no exception. If you’ve ever dealt with the frustrations of dental insurance, whether as a patient or a provider, you’ll know that it’s a system that can be slow, confusing, and often feels like it’s designed to benefit everyone except those it’s supposed to serve. That’s where Web3 comes in. But what exactly is Web3, and why does it matter for the dental insurance industry?

In simple terms, Web3 uses blockchain technology to create decentralized networks, meaning no one company or entity holds all the control. Instead, participants in the network can have ownership and a say in how things are run. For the dental insurance industry, which is dominated by a few large companies, this could be a game changer.

 The Current Problem with Dental Insurance

As it stands, major dental insurance companies control most of the platforms and networks that distribute dental benefits. These companies have a ton of power, and they’re not shy about using it. Dentists and patients alike often deal with claim denials, requests for additional documentation like narratives or x-rays, and endless review processes that slow everything down. All of this creates a disconnection between patients and their dentists, with insurance companies acting as middlemen who often seem to complicate things more than they help.

If you’re a dentist, you’ve probably wondered how things got to this point, and if you’re a patient, you might be frustrated with how hard it is to just get the care you need without jumping through hoops. The truth is, the current structure of the dental insurance industry was built over time to benefit the big players at the top, and it’s often inefficient, expensive, and doesn’t always prioritize patient care.

Dental Membership Plans: A Step in the Right Direction

Some dental practices have started to push back against this system by offering in-office dental membership plans. These plans aren’t insurance per se, but they give patients access to a discounted fee schedule in exchange for loyalty to the practice. For dentists, this is a way to offer value to their patients while cutting out the middleman — the insurance company. Instead of paying high premiums for dental insurance and then fighting for every claim to be approved, patients can pay their dentist directly for a membership that guarantees them discounted care.

These membership plans are a great way to start changing the dynamic. They allow dentists to take more control over their practice and how they interact with patients. At the same time, patients benefit from more transparent pricing and fewer headaches dealing with insurance companies. However, these plans are still just scratching the surface of what’s possible.

Enter Web3: A New Approach to Dental Benefits

So, what if we could take the idea of dental membership plans and supercharge it with Web3 technology? That’s where things get interesting. With Web3, instead of allowing a few big insurance companies to control everything, we could create decentralized networks where the participants — the dentists, the patients, and other stakeholders — have ownership in the network itself. This means that everyone who is a part of the network would have a say in how it operates, and they could share in the rewards as well.

One of the key benefits of Web3 is that it can eliminate inefficiencies. In the current system, a huge chunk of the money paid in insurance premiums goes toward administrative costs — things like processing claims, dealing with paperwork, and managing endless review processes. In a Web3 system, much of this could be automated using smart contracts. These are self-executing contracts with the terms of the agreement directly written into code. For example, a smart contract could automatically pay a dentist for a completed procedure without the need for a lengthy review or approval process.

Not only could this streamline the system, but it could also make it fairer. Right now, the insurance companies decide which claims get approved and which don’t, often based on opaque criteria. In a Web3 system, the rules for approval could be built into the network itself, and everyone could see how decisions are being made. This level of transparency could go a long way toward building trust between dentists, patients, and the networks they rely on.

Why Ownership Matters

One of the most exciting things about Web3 is the concept of ownership. In the current system, dental insurance companies own the networks, and they reap most of the rewards. Dentists and patients are just users of the network, with little to no say in how it operates. But in a Web3 system, the participants could own a piece of the network. This could take the form of tokens or other digital assets that represent a stake in the network.

Ownership not only gives participants a financial incentive to make the network better, but it also ensures that decisions are made with the interests of the whole community in mind. Instead of a handful of executives at an insurance company deciding what’s best, decisions could be made democratically by the people who use the network.

Looking Ahead

The idea of using Web3 to transform the dental insurance industry is still in its early stages, but it holds a lot of potential. By decentralizing control and giving ownership back to the people who use the system, we could create a dental benefits network that is more efficient, transparent, and fair.

While dental membership plans are a step in the right direction, Web3 will take things to the next level. It’s an exciting time for both patients and providers, and as this technology takes off, it could revolutionize the way we think about dental benefits for good.