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.
For any plan, be sure to ask about the percentage they cover and the lifetime maximum. The amount of coverage varies greatly, but a common figure is 50% coverage with a $1500 lifetime maximum per child. It's also recommended that you keep the same insurance plan during your entire orthodontic treatment.