Dental care can be expensive, starting with monthly insurance premiums. Basic coverage often includes annual checkups, cleanings, and x-rays. However, it may not cover costly procedures like fillings, root canals, or orthodontia. This can leave patients paying a significant amount out of pocket, straining their finances.
Luckily, if you have a Flexible Spending Account (FSA), Health Savings Account (HSA), or Limited Purpose FSA, you can feel relieved! These accounts help pay for many out-of-pocket dental treatments, making essential oral care more affordable.
Using Your FSA or HSA for Dental Care
With an FSA, LPFSA, or HSA, you have a great financial tool. These accounts let you set aside tax-free funds for healthcare expenses. Many preventative and essential dental procedures are eligible under IRS rules. You can use pre-tax dollars for treatments instead of using your regular savings.
By using your FSA or HSA, you can better manage the costs of necessary dental care while lowering your taxable income. Here’s how it works.
Eligible Dental Expenses
You can use your healthcare spending account for various dental treatments for yourself, your spouse, children, or other legal dependents. Eligible expenses include:
- Preventative care: Teeth cleanings and routine check-ups
- Basic restorations: Fillings, sealants, crowns, and bonding
- Major procedures: Dentures, extractions, and oral surgery
- Orthodontic treatments: Braces, retainers, and other corrective treatments
- Specialty care: Gingivitis treatments and gum recession procedures
- X-rays and diagnostics: Dental imaging needed for treatment
Many over-the-counter dental products also qualify for reimbursement through an FSA or HSA. These include:
- Denture adhesive and cleansers
- Orthodontic wax for braces
- Mouth guards for teeth grinding or sports
- Light therapy systems for gum treatments
What dental expenses ARE NOT covered?
While FSAs and HSAs cover many dental expenses, they do not cover cosmetic procedures. According to IRS Publication 502, only treatments that diagnose, cure, mitigate, treat, or prevent disease qualify.
The following are NOT eligible for reimbursement:
- Cosmetic dentistry: Teeth whitening, veneers, and non-medically necessary orthodontia
- Everyday hygiene products: Mouthwash, toothpaste, toothbrushes, and floss
Though toothpaste and floss are vital for good oral health, they are personal care items, not medical treatments.
Maximize Your Savings on Dental Care
To make the most of your FSA or HSA benefits, follow these best practices:
- Budget for treatments ahead of time: If you expect dental work next year, plan your contributions to your FSA or HSA.
- Use funds before they expire: Most FSAs have a use-it-or-lose-it rule, meaning leftover money does not roll over. HSAs let funds grow over time.
- Verify expenses before paying: Check IRS guidelines or ask your benefits administrator if a procedure qualifies for reimbursement.
By using these accounts wisely, you can reduce financial stress and prioritize oral health without overspending.
The Bottom Line
A healthy smile is important, and FSAs or HSAs make quality dental care more accessible. Whether you need routine cleanings or major procedures, these accounts give you the financial flexibility to manage costs with tax-free funds.
If you have questions about eligible expenses or need help using your benefits, contact your benefits administrator. With proper planning, you can protect your dental health while also taking charge of your finances.
Beneliance has provided Arkansas employers with comprehensive third-party employee benefits administration and compliance services since 1996. Please enter your email (above right) to receive notifications about new blog articles as they are published.
