Some of us are lucky enough to have gold-plated employer-sponsored dental insurance with robust coverage for routine care and treatments. But often, basic dental insurance doesn’t cover pricier procedures like implants and orthodontic treatments, leaving patients with significant out-of-pocket dental costs. Fortunately, many Americans are finding a solution in health savings accounts (HSA), designated healthcare accounts that offer greater flexibility and better coverage than traditional insurance while providing tax benefits.
A Health Savings Account is a tax-advantaged fund designated explicitly for healthcare expenses. You contribute to your HSA with pre-tax income, so it lowers your taxable income and can have significant tax benefits. HSAs are an excellent way to pay for medical and dental expenses not covered by your insurance and can sometimes serve as an alternative to dental insurance. They’re ideal if you have a high-deductible medical plan or a preventive-care-only dental plan and are also an excellent option for people who don’t have employer-sponsored dental coverage. You can use your HSA to cover almost any expense that’s considered medically necessary, so it offers much more flexibility than traditional plans. HSA funds roll over from year to year, so if you don’t use them, you can access them for future needs.
With traditional dental insurance, you pay a regular premium in exchange for coverage, often with considerable limitations. Most dental plans usually have a copay for each visit and a deductible (the amount you need to reach before coverage kicks in). Some also have a coverage ceiling, the maximum they’ll pay yearly. Usually, your insurance divides dental care into three major categories: preventive care like cleanings and checkups, basic treatments like fillings and major procedures like crowns, bridges and implants. Many dental policies fully cover preventive care and partially cover basic treatments but may leave patients in the lurch regarding major procedures. It’s not uncommon to see patients spending thousands out-of-pocket for crowns and implants, even with dental insurance. With an HSA, you determine the amount to set aside before determining your taxable income. Once your HSA is funded, you have significant flexibility in deciding how to use it, as long as it’s for medical/dental care.
Another issue is that your favorite dentist may not be in-network with your dental plan, while an HSA lets you choose your dentist.
Your HSA can cover almost any medically necessary dental care, from routine checkups and cleanings to fillings, crowns and root canals. One benefit of using HSA funds is that they can cover treatments not covered by some dental plans, such as crowns and implants. Another big plus is that HSA funds can be used for orthodontic care, which is not covered or only partially covered by many traditional dental plans. Orthodontic treatments often mean significant out-of-pocket expenses for families, so tapping into HSA funds can be a godsend. Your HSA can cover traditional braces or clear aligners like Invisalign. Your HSA funds can’t cover cosmetic procedures like whitening. However, you can use HSA funds for many restorations with cosmetic components (like crowns and veneers) since they have both medical and cosmetic benefits.
Many Americans find their dental insurance terrific for routine care but not so great when they need treatment, especially a major procedure. Out-of-pocket expenses can be an unpleasant surprise. If you have high-quality employer-sponsored dental insurance, an HSA can be an excellent complement, offering a designated fund for pricey out-of-pocket expenses. AN HSA can even replace traditional dental coverage for patients without employer-sponsored plans. If you are considering purchasing dental insurance independently, an HSA may be a better option, offering increased flexibility and a designated fund for major procedures. Having a healthcare fund set aside provides peace of mind and helps ensure you don’t let preventive care slide to save money, If you use an HSA, make sure you estimate your dental expenditures and budget accordingly, including checkups, cleanings and other routine care, along with a fund for more significant procedures should the need arise.
At Greenhill Family Dental Care, a growing number of patients use HSAs as their primary funding source for dental care. Healthcare Savings Accounts offer flexibility and freedom from worrying about whether your dentist is in-network. We’re happy to talk with patients as they develop their dental care budgets and provide cost estimates for standard procedures. It’s a strategy that can be a winner for both patients and providers and help you get the best possible care while accessing treatments like Invisalign that may have previously been out of reach with a traditional plan.
