What is to 'Capitalize'. Capitalize is an accounting method used to delay the recognition of expenses by recording the expense as a long-term asset. In general, capitalizing expenses is beneficial as companies acquiring new assets with a long-term lifespan can spread out the cost.
For orthodontics, most, if not all plans have a lifetime maximum amount that the carrier will pay for treatment. This is typically anywhere from $750 to $4000 and the patient is responsible for the remainder of the orthodontic cost.
The total amount paid, regardless of the percentage, will never exceed the lifetime maximum. Usually, the plan will state that it will cover 50% of orthodontic costs up to the lifetime maximum of the plan. Plans also may limit coverage based on age or their definition of adult. Certain plans will not cover patient that begin treatment after the age of 19.