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.
Generally, these limitations are three years for competent, adult patients. For minor patients, the limiting period may extend to age twenty-one (3 years after adulthood). The actual application of statutes of limitation have some exceptions and special rules, but this is the general idea.