What Are FSAs and HSAs?
FSAs and HSAs are great ways to cover out-of-pocket dental expenses and co-pays. However, they’re not identical.
Flexible Spending Accounts (FSAs)
An FSA account is a specific healthcare account that lets you invest pre-tax money for any out-of-pocket healthcare expenses you may have, including dental X-rays, preventative dental care, prescription costs, and more. When you put money into an FSA account, you don’t pay taxes on the money, even if you withdraw it and pay for medical or dental expenses.
However, FSAs do come with a “use it or lose it” policy, which means you must spend the full amount in your account by the end of the year or you’ll lose it. Some FSAs do have a two-and-a-half month grace period where you can use your money before it runs out. To ensure you don’t lose money, set aside money that you know you’ll spend.
FSAs have a set contribution limit that’s typically lower than HSAs. The IRS limit to FSA accounts in 2023 was $3,050 and $3,200 in 2024.
You can pay a variety of dental and medical expenses with your FSA funds, though it can’t be used to pay for insurance premiums. Keep in mind that you can’t open an FSA account if you have a marketplace health insurance plan.
Health Savings Accounts or HSAs
While HSAs are similar to FSAs, they offer more flexibility. They allow you to invest pre-tax money for healthcare expenses and are an option for people who choose high-deductible health plans (HDHPs). HSAs are considered “tax-advantaged” plans as they reduce the amount of income you owe to the IRS. In addition, the money in HSAs isn’t taxed, even if it grows.
You can only have an HSA if you have an HSA-eligible plan, such as a high-deductible health plan. The money that you set aside in an HSA can then be used for out-of-pocket costs, such as dental surgeries.
The major advantage that HSAs offer over FSAs is that you can roll over your money from the previous year rather than lose it. This feature lets you build up a sizeable amount in your account over time. HSAs also have a higher contribution limit than FSAs. In 2024, the set contribution limit was $4,150 for an individual and $8,300 for a family.
Have an unexpected medical expense? You can even roll over some of your traditional or Roth IRA funds into your HSA account if you need additional money to pay for an unexpected medical expense.
The Advantages of FSAs and HSAs
The good news is that patients can use both accounts to cover their dental expenses, whether partially or fully. And both accounts come with tax benefits. As long as you use your FSA and HSA funds for medical or dental expenses, the withdrawals are not taxed and you can reduce your taxable income. Additional good news is that you can have both an FSA and an HSA. You don’t have to choose one or the other if you qualify for both.
Finally, FSA and HSA accounts are like healthcare investment accounts. They grow tax-free, and you can invest in them the same way you would invest in a retirement account. Think of it as an account where you store your medical money. And with an HSA account, you don’t have to withdraw your money by a certain age, like you do with an IRA.
Dental Expenses Covered by FSAs and HSAs
If you have an FSA or HSA account, here are some common dental services that are typically covered by both:
Routine Dental Cleanings and Exams
X-rays
Fillings for Cavities
Crowns and Root Canals
Orthodontic treatments (braces, Invisalign)
Periodontal (gum disease) Treatments
Dentures and Dental Implants
It’s important to keep in mind that FSAs and HSAs don’t pay for all dental expenses. Dental expenses that are considered purely cosmetic don’t qualify, such as teeth-whitening procedures. However, if a dental procedure is considered medically necessary, it may be covered. Check with the office at Ranieu Family Dental to be sure.
Why You Should Use Your FSA or HSA for Dental Care Before Year-End
The “use it or lose it” feature of FSA is the most important feature to remember if you have an FSA account. The funds in your FSA account must be used by December 31st. Some plans do offer a small grace period, but it’s still a good idea to spend this money on necessary preventative care before that date.
To ensure that you use up your FSA funds before December 31st, schedule your dental appointments way before that date. Try to schedule appointments by early November, at the latest. Furthermore, if you need fillings or additional dental work, be sure to schedule those treatments sooner rather than later.
Your dental insurance has a limit as to how much they will cover. Make sure you know how much your out-of-pocket costs will be so that you can effectively plan your dental treatments. You can also check whether or not you have met your deductible.
If you have an HSA account, you’re not obligated to use it before the year ends. Instead, you can roll over the money to the next year and let it build. HSAs are beneficial if you need costly dental care in the future, such as braces, Invisalign, or dental implants. They’re also beneficial if you have an unexpected dental emergency.
Patients can tick off preventative care and routine exams annually with their FSA funds and then use their HSA savings for larger dental treatments. In either case, keep an eye on your FSA funds to ensure you don’t lose that money and build your HSA account so that you have a nice nest egg for future dental expenses.
FSA vs. HSA: Which Is Better for Dental Care?
If you have both an FSA and an HSA, you may be wondering which one to use when a dental bill comes your way.
When to Use Your FSA
When to Use Your HSA
Real World Examples
If you or your family should have cavities and there’s enough money in your FSA account to pay for fillings, then use the money from your FSA account. HSA funds should be used for dental treatments that would otherwise feel overwhelming without a nest egg.
Sometimes, emergencies happen. If one of your children should suffer from a knocked-out tooth while playing football or lacrosse, make an emergency appointment at Ranieu Family Dental and pay any required out-of-pocket costs with your HSA funds.
Remember that there can be an overlap, too. If you’re going to lose your FSA funds and you need to pay for an expensive dental treatment, then be sure to use all of your FSA funds so you don’t lose that money. You can mix and match when paying with FSA or HSA funds as well. Or you can choose to use up your FSA funds, and when that’s spent, dig into your HSA account.
Top 10 Common Dental Procedures You Can Pay for With Your FSA or HSA
Many patients don’t realize that many dental procedures can be paid for using their FSA or HSA funds. Whether it’s a routine checkup or a dental emergency, your FSA or HSA can cover some or all of it. Here are the 10 most common dental procedures that you can pay for with your FSA or HSA.
1. Routine Dental Cleanings
2. Dental Exams & X-rays
3. Fillings for Cavities
4. Crowns
We offer porcelain crowns to protect weakened teeth from further decay and restore function to damaged teeth. We cement the prosthetic crown to your natural tooth structure. Crowns fall under the “restorative treatment” category and are covered by FSAs and HSAs.
5. Root Canals
6. Orthodontics (Braces & Invisalign)
Orthodontic treatment straightens teeth and treats problems like overcrowding, underbites, overbites, and misaligned teeth. If the treatment is medically necessary, both accounts will cover it. At Ranieu Family Dental, we offer Invisalign clear aligners to help with problems like misaligned teeth and overcrowding. You can use your HSA funds as well as our flexible payment options to cover the cost.
7. Retainers
8. Periodontal Treatments (Gum Disease Therapy)
9. Dentures
10. Dental Implants
Your Trusted Family Dentist in Vancouver, WA
If you have an FSA account, we encourage you to schedule your dental appointments before the end of the year so that you don’t lose your FSA funds. You can schedule your last dental cleaning or any specialized treatment you may need, such as fillings for cavities.
On the other hand, if you have an HSA account, it’s a good idea to let the money grow in the event that you need a costlier dental treatment later on. If you have more than one child who needs Invisalign or retainers, let your HSA account grow so that you can comfortably cover all their orthodontic treatments in the future.
Although we have listed the top 10 common procedures that are typically covered by FSAs and HSAs, there may be others you’re curious about. Don’t hesitate to contact our office to ask which additional treatments your accounts cover. Our office can go into detail about which dental procedures are covered and why.
Need to set a dental appointment? Whether you need general, restorative, emergency, or even cosmetic dentistry, Ranieu Family Dental can help. Just call our office or make an appointment online. We’ll be happy to take care of all your dental needs and explain how your FSA and HSA accounts can contribute to your dental payments.