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 TDP and TRDP both have a yearly maximum of $1,300 per person, per enrollment year for non-orthodontic services (payments for certain diagnostic and preventive services are not applied); an orthodontic lifetime maximum of $1,750 per person, per lifetime (orthodontic diagnostic services are applied to the $1,300 yearly maximum) and a dental accident