Let’s face it, dental insurance is very confusing. Dealing with insurance companies isn’t much fun, either. But you do have options.
Patients that have a Flexible Spending Account (FSA), can use that money to pay for dental procedures. So, what exactly is an FSA and how can you benefit from it?
Tax Free Dollars
A Flexible Spending Account is an account where you contribute money from your salary before taxes are withheld. It’s a great way for families to save money on health and dental related costs.
If you know you will be incurring dental costs that won’t be reimbursed from your regular health plan, using your FSA is a great way to spend your tax free money.
Ultimately, you save money by reducing your income taxes. By decreasing your taxable income, you increase your spendable income. How great is that?!
Your Flexible Spending Account is pretty easy to understand. At the start of each year, during open enrollment, you let your employer know how much you want to contribute to your FSA.
That money is then taken out each paycheck in equal installments and put into a special account by your employer.
It’s very important for patients to carefully calculate their expected costs for the year. If you put too much money in and don’t use it, by law, you will lose it at the end of the year.
Roll Over Your Money
Similar to a Flexible Spending Account, an Health Savings Account (HSA) allows you to spend your pre-taxed money on health related costs. The biggest difference is an HSA allows you to rollover any unused money from the previous year.
Another benefit of an HSA is that it allows the patient to use that money at any time for health related costs. There is no need to obtain approval from your employer.
Insurance certainly has changed throughout the years, but by knowing your rights and options, you can save a bundle of money, each year, for your family!