All About HSA And FSA For Invisalign® Treatment
Thinking about using Invisalign transparent braces to straighten your smile? Well! Then you might be wondering whether you should prepare for a huge sum of money as Invisalign treatment is more expensive than conventional orthodontic treatment.
But the good news is that to help patients maximize their benefits, several insurance companies now cover Invisalign transparent braces, thanks to health savings accounts (HSA) or flexible savings accounts (FSA). Therefore, you can utilize this money to pay for your out-of-pocket medical expenses.
Both HSAs and FSAs are tax-advantaged accounts that can be used to cover eligible medical costs, such as Invisalign® treatment. These accounts enable you to save money on taxes by allocating pre-tax funds to cover healthcare expenses.
The distinctions between HSAs and FSAs, the prerequisites, and the methods of payment for Invisalign® treatment will all be covered in this article. We will also go over some crucial points to remember while using these accounts for medical costs.
What is FSA & HSA?
➡️HSA (Health Savings Account) - You can use the tax-free funds in your HSA to pay for copays, deductibles, and other medical expenses. Only people with high-deductible health insurance plans can contribute to an HSA.
➡️FSA (Flexible Savings Account) - An FSA is a health insurance benefit the employer provides that enables employees to save money not subject to tax to pay for some eligible medical costs. Regular pre-tax deductions from your salary are used to finance FSAs.
Know The Difference
HSAs and FSAs are substantially equivalent in most respects. You can save money tax-free in the accounts, then utilize the money to pay for medical care that you would otherwise have to pay out of pocket. However, some significant distinctions between HSAs and FSAs are crucial to recognize and comprehend.
How Can They Help With Orthodontic Treatment?
Orthodontic treatments qualify as medical expenses covered by HSAs and FSAs, as long as a dentist or orthodontist has recommended treatment. You can use these funds to pay directly for treatment or cover deductibles, co-pays, or coinsurance.
Since this money is untaxed, you get more value from these accounts than you would use money from a traditional savings or checking account. Additionally, any money in an FSA toward the end of the year may expire, so scheduling treatment or paying for braces or Invisalign. At the same time, you still have access to it is often beneficial. This applies to your orthodontic care or any covered family members.
How to Use Your HSA Funds
You must adhere to your provider's instructions to access your HSA money when paying for a procedure. You will typically have four choices:
Benefits/Debit Card: This choice lets you operate your HSA like a checking account. Only medical merchants and your HSA's current balance are permitted transactions.
Checks: Many HSA administrators will also write you a cheque if you ask. Then, you can use these for your standard bank account. You can pay medical providers directly through the HSA portal if your employer provides this service.
Reimbursement: With this option, you pay out of your pocket. Then, you reimburse yourself using your HSA funds.
What if I also have dental insurance?
Even with dental insurance, you can still use FSA dollars to pay for Invisalign treatment. You merely need to remember that you can't double the bill. In other words, if your insurance fully covers Invisalign, you cannot receive a reimbursement from your FSA money. However, if your insurance only covers part of your Invisalign treatment, say $2,000, you can use your FSA to cover the difference.
However, remember that having dental insurance doesn’t mean it will help pay for Invisalign. Be sure to verify your coverage limits and ask about distinctions between essential and cosmetic treatments and orthodontics for adults and teens.
How can my HSA or FSA help me save money?
It all comes down to one word: tax-free. You save money by using untaxed dollars in your HSA or FSA to pay for your orthodontic treatment.
Ask your dental team or dentist if you have any queries regarding how dental insurance handles Invisalign to learn more. We can walk you through financial plans with flexible payment alternatives. Based on that, you can make appropriate plans once you know your orthodontic treatment's out-of-pocket expenses.