Can an HSA Be Used For Dental Expenses?

Health Savings Accounts (HSA) are proving invaluable for helping cover employee medical expenses while offering tax advantages to both the employer and employee. An HSA is particularly valuable in covering expenses that may not be covered by a company's healthcare program. These could include deductibles, copayments, prescriptions, and more.

While most understand the value of these types of accounts in covering out of pocket expenses associated with healthcare, there are questions many have in regard to HSA and dental expenses. Can an HSA, for example, be used for dental expenses? What procedures qualify for payment? Are orthodontics and implants covered? What should you know about HSA and dental expenses and how do you get dental expenses paid through an HSA?

Can an HSA Be Used For Dental?

You will probably be glad to know that, yes, an HSA can be used to pay eligible dental expenses. Of course, the key words here are "eligible” and “qualifying expenses.” What are these “qualifying” dental expenses, and which procedures are non-qualifying? In many cases, the deciding factor is what is determined as corrective or preventive and what is considered "cosmetic".

Qualifying Dental Expenses

Generally speaking, qualifying dental expenses are determined by the IRS. An HSA can cover these expenses not only for you but for your spouse and dependents as well.

Qualifying dental expenses eligible for payment under an HSA include:

• Extractions
• Teeth Cleanings
• X-rays
• Crowns and fillings
• Non-cosmetic dentures and implants
• Braces
• Flouride treatments
• Sealants
• Root Canal
• Some over-the-counter dental products

This is quite a generous list of services that can be paid for through an HSA, although not totally complete.

Orthodontics and an HSA

Many wonder if they can use their HSA account to pay for orthodontics like braces. The short answer is that yes, expenses related to braces could be picked up under an HSA. This is particularly true if braces are used as a preventive or corrective measure. Clear or “invisible" aligners are often approved for coverage through an HSA. Your dentist will need to convey that the need for orthodontics is more than cosmetic.

Non-Qualifying Expenses

While the list of eligible dental procedures covered under an HSA is extensive, the list of non-qualifying expenses is minimal. These include teeth whitening and what may be considered cosmetic dental procedures. Also, daily care products like toothpaste, mouthwash, and dental floss do not qualify under an HSA. Such items are considered “general use” products and do not address a specific healthcare issue.

There may be circumstances, however, when a healthcare professional or dentist may determine a general-use tool is critical in the treatment of a specific problem. In such circumstances, these general daily tools may be covered by your HSA. These are considered “dual purpose” tools.

Dental Implants and an HSA

While basic dental insurance may not cover dental implants, an HSA might pay expenses. As long as procedures are not deemed purely cosmetic, dental implants should be covered. This can range from a few teeth to an entire mouthful of implants.

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What to Know About Using An HSA For Dental

Perhaps the best piece of advice about using an HSA for dental surgery is to become as familiar as possible with your plan before planning a procedure. This can prevent being surprised by unknown costs. Your provider should be able to provide a complete listing of covered dental and other medical expenses that can be used as a guideline. They may make this available either online or through their benefits booklet. You can also always ask for a pre-treatment estimate or a predetermination of benefits to review what your out of pocket costs for any given procedure will be.

Be aware that if you use HSA funds for a non-qualifying expense, you may be subject to taxes on any funds used for the non-qualifying expense. Those under 65 may face a significant 20% penalty in such circumstances, so due diligence is key. That 20% penalty is no longer in effect after age 65.

One of the key issues that can cause confusion is whether or not a dental procedure is “cosmetic." Of course, for the patient, appearance is critical. However, if the procedure is not considered a medical necessity, it may not be considered a qualified expense with which you can apply your HSA. That being said, HSA has proven to be very flexible in the types of procedures that are qualified expenses.

While a Health Savings Account is not a healthcare plan, it can be vital in ensuring that out-of-pocket costs are being taken care of. In many cases, these out-of-pocket costs can be significant.

How To Pay Your Dental Bills with an HSA

Paying your dental bills through an HSA can depend on your healthcare specialist and provider. In some cases, the dental office will assist in filing your claim. Many providers also offer online systems for filing claims. Once you are comfortable that your bills are covered, you should initiate the claim filing with your dentist or provider.

This is one reason working with a professional benefits team like those at AEIS can help. Providing coverage is one thing. Making sure employees can take the full value of those benefits is another. We work hand in hand with our clients and their employees in making sure programs like an HSA are administered efficiently and effectively.

How AEIS Can Help

AEIS (Advanced Estate and Insurance Services, Inc.) specializes in serving as an advocate, advisor, and strategist for small to medium businesses with 2 to 500 employees. If you are in search of expertise in selecting, optimizing, executing, and maintaining a benefits package for your company, we invite you to connect with us.

Disclaimer: Any information related to compliance, laws and regulations, or other subject matters in this blog is intended to be informational and does not constitute legal advice regarding any specific situation. The content of this blog is based on the most up-to-date information that was available on the date it was published and could be subject to change. Should you require further assistance or legal advice, please consult a licensed attorney.