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 American Academy Of Orthodontists (AAO) recommends that most children should have an orthodontic assessment by age 7. With studies have shown that braces are more frequently applied to children at a later date (11-13) than the younger prepubescent (8-10) bracket.