When you choose a dental plan, the network behind it matters more than most people realize. Some insurers lease networks, essentially renting access to dentists rather than contracting with them directly. However, a directly managed network, supported by long-standing and transparent provider partnerships, can dramatically improve cost, access, and the overall experience.
While leased networks can make an insurance plan appear larger on paper, they often come with hidden drawbacks. Data from the 2024 Milliman Network Study, one of the industry’s most robust analyses of dental network performance, shows direct networks deliver stronger, more consistent performance than leased networks.
Here’s why that matters, and what it means for your organization.
When an insurer manages its own network, it negotiates fees directly with dentists, meaning the prices are known, consistent, and monitored. This helps keep costs predictable for both the plan and your employees.
Leased networks, however, pull dentists from multiple different agreements. Those dentists may have different contracted rates depending on which network “version” is being applied. That can lead to:
unpredictable out-of-pocket costs
inconsistent savings
higher variability in claims
more confusion for employees
The 2024 Milliman national data shows that strong PPO networks, like Delta Dental’s, consistently deliver deeper and more reliable discounts, which means lower costs overall for members and employers.
In short: when the network is directly managed, fees stay consistent and savings stay predictable.
Since we contract directly with dentists, we’re able to ensure:
strong credentialing standards
continuous quality reviews
fast, accurate claims processing
direct support for providers
A leased network model can’t offer the same level of oversight because the insurer is essentially “borrowing” dentists from another network. That makes it harder to enforce quality standards or stay aligned on policies.
With Delta Dental of Tennessee, the accountability is direct and clear. Our dentists contract with us, not with a third-party, so we can maintain the quality and reliability employers expect.
Every employer wants a plan with a large, high-quality network. Network size isn’t all that matters though, network stability can have a big impact.
The Milliman study found that large, well-established networks continue to grow steadily year after year. That means more access points and more choices for employees.
Leased networks, on the other hand, can change quickly. Because these dentists aren’t contracted directly with the insurer:
dentists may be added or removed without notice
directories can become outdated
employees may lose access to a provider unexpectedly
For an employer, this instability can create confusion and a negative perception of the benefits you worked hard to provide.
Our directly managed network is built for long-term relationships, not temporary participation.
This means more reliable access, lower turnover, and an overall smoother experience.
A dental plan is only valuable when employees feel comfortable using it. Direct networks tend to have higher “in-network usage,” which simply means: More people see dentists who are in the plan’s network, where their costs are lowest.
With leased networks, dentists may not even realize they’re part of all the different plans that access them. This can create awkward moments for employees who thought a dentist was in-network, only to find out at the appointment that the dentist wasn’t participating in their specific plan.
That leads to frustration, unexpected bills, and lower member satisfaction.
Delta Dental’s direct approach removes this guesswork. Our dentists know exactly which plans they participate in, and members can count on accurate provider listings and reliable access.
One of the biggest frustrations employees can face is receiving an unexpected bill after what they believed was a routine visit.
Since leased networks rely on multiple fee schedules and different types of agreements, billing can become complicated. Even providers sometimes struggle to understand which rate applies.
With our directly managed network, dentists work from a single, clear contract, which means:
fewer claim errors
less paperwork
faster processing
fewer surprise charges for your employees
This simplicity reduces headaches for everyone, including your HR or benefits team.
Choosing a dental plan built on a leased network may look similar on paper, but the experience, and the results, can be very different. Here is a side-by-side look at the two network structures.
| Feature | Leased Networks | Direct Networks (Delta Dental) |
|---|---|---|
| Network Control | Indirect, via leasing contracts | Direct contracts and relationships with dentists |
| Fee Schedule Consistency | Often inconsistent, varies by leased network | Stable, standardized fee schedules |
| Reimbursement Rates | May be reduced, below cost of care | Fair and consistent reimbursement |
| Provider Stability | Sudden loss of dentists possible | Low turnover, stable provider relationships |
| Claims Processing | More complex, risk of billing errors | Simplified, consistent claims processing |
| Quality Assurance | Limited control over treatment quality | Rigorous credentialing and quality standards |
| Patient Cost Predictability | Less predictable, potential for increased expenses | Predictable costs, no balance billing |
A dental plan is only as strong as the network behind it. When that network is directly built, maintained, and supported, as it is at Delta Dental of Tennessee, everyone benefits: employers, employees, and dentists alike.