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.
PPO Plan pays 50% to a lifetime maximum of $1,000. Orthodontic payments made monthly are $60 (50% of $120) x 12 months for a total of. $720. Keep in mind that patient is still liable for the providerâs original case fee because. that was the original financial agreement between the patient and provider.