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 enhanced TRDP will feature some additional benefits once the new contract is effective, including certain implant services at 50 percent of allowable charges, an increase to the orthodontic lifetime maximum from $1,200 to $1,500 and 80 percent coverage for certain posterior composite restorations.