Lasers in dentistry: Innovative, so why is insurance reimbursement limited?

Laser technology has become a game changer in the dental field. It offers a range of benefits that improve both patient outcomes and the overall treatment experience. From reducing pain to enhancing precision during procedures, lasers are revolutionizing the way we treat patients.

However, despite these clear clinical advantages, dental insurance companies aren't exactly jumping on the bandwagon to increase reimbursements for laser-based treatments. To understand why, I’ll dive into what makes lasers great and why that doesn’t necessarily translate to higher payouts.

Why lasers are beneficial in dentistry

Precision with minimal invasiveness: Lasers give dentists the ability to target very specific areas with incredible precision, making procedures less invasive. This is especially useful in soft tissue surgeries, periodontal treatments, and cavity prep. The results? Less damage to surrounding tissue, less bleeding, and a faster recovery for patients.

Reduced need for anesthesia: Many laser treatments require little to no anesthesia, which is a huge win for patients who fear the dentist or have health conditions that make sedation risky. This makes dental care more accessible and less intimidating.

Fast healing: Because lasers cause less trauma than traditional tools, patients heal more quickly after a procedure. This is a major plus for treatments such as frenectomies, gum contouring, and periodontal therapies, where recovery time is critical.

Enhanced patient experience: Lasers are quiet and less frightening than the traditional drills many people dread. This alone makes them a great selling point for patients who are hesitant about some treatments, which leads to higher case acceptance for more complex procedures.

Niche marketing and patient attraction: Practices that invest in advanced technology such as lasers can attract a specific group of patients—those who are actively seeking high-tech, minimally invasive treatment options, who are often willing to pay a premium. Having lasers in your practice can differentiate you from competitors and position your office as innovative and patient-centric. This niche market values reduced discomfort, fast recovery, and the use of cutting-edge advancements.

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.