Can You Use HSA For Dental Expenses?

The focus here is, Can you use HSA for dental expenses?

You’re about to find out soon. Just keep reading this post. We’ll tell you whether or not you can use this tax-free account to cover your oral healthcare bills.

We’ll also tell you what procedures qualify and do not qualify for HSA coverage. But before anything else, let’s gasp at the term HSA.

Can I Use HSA For Dental?

Sometimes your workplace may only cover some of your medical bills. This is where an HSA will come in and cover any out-of-pocket healthcare costs.

These include copayments, hospital bills, hearing aids, deductibles, doctor’s visits, acupuncture, ambulance, therapies, and prescriptions.

In addition to covering medical expenses, the funding option offers several tax benefits to employers and employees. It sounds interesting?

What’s HSA?

The acronym above stands for “Health Savings Account.” It’s a tax-exempt account that is used to offset costs associated with healthcare.

The fund allows users to put money away and withdraw it tax-free when covering medical bills. Eligibility is based on your coverage by specific high-deductible health plans (HDHP).

Usually, HDHPs come with a lower monthly premium.

So you must cover most healthcare costs before your insurance firm pays its share. If you have Medicare coverage or other covered services, you cannot contribute to an HSA.

Using HSA for Dental

The short answer is yes! You can use this account to pay for oral procedures that are eligible.

You can even use it to settle bills that a basic dental insurance package cannot. For instance, you can use this account to cover fluoride treatments.

While this is true, you must know one important thing. Certain oral expenses can and cannot be paid with HSA. Do you need clarification?

Let’s review them so you can learn better.

Dental Expenses You Can Pay with an HSA

Before you think of using an HSA to cover your oral care bills, it’s critical to identify eligible procedures.

Now, this tax-exempt account can cover many oral services and orthodontic care. They include crowns and fillings, sealants, dentures, implants, braces, and X-rays.

Others are prescription medications, root canals, wisdom teeth removal, inlays and outlay fluoride treatment, and tooth cleaning.

Models or molds, tooth contouring, full-mouth periodontal therapy, gum cleaning, oral bleaching, etc., are additional qualified procedures.

Dental Expenses You Cannot Pay with an HSA.

Similarly, a few oral care bills can’t be paid with an HSA.

The IRS strongly prohibits them based on reasons that are best known to them. Such exempted services are classified under “general health or cosmetic services.”

Examples are brushes, oral adhesives or creams, floss, mouthwash, picks, denture cleaners, teeth-whitening products, and toothpaste.

Others are nonprescription medicines and vitamins/herbal supplements.

What About Dual-Purpose Expenses?

When discussing oral health, certain toothcare services are deemed “general use.” A handful of them are listed above. They generally improve people’s well-being in general.

They cannot, however, be used to treat a particular illness. Moreover, expenses linked to these general uses cannot be paid with an HSA.

But, there will be a time when a physician or dentist may declare an overall-use device or service clinically pivotal. In other words, the gadget or service can treat a specific disease or condition.

When a general-use tool becomes critical for treatment, the costs are termed “dual-purpose expenses.” Therefore, an HSA can be used to settle such bills.

Until then, your healthcare provider must write a note indicating the necessity for such an item or service. Otherwise, using such accounts to cover such costs may be an offense.

Effects of Paying Unqualified Dental Costs with an HSA

You may be penalized for using your HSA to cover disqualified dental expenses. The repercussions are significant. You may be entangled with unpaid taxes.

If you’re under 65, there’ll be a penalty of 20%.

For instance, if you spend a thousand dollars on oral procedures that are not qualified, you’ll owe $420 in taxes + penalties and 22% percent tax in the bracket.

Mind you; this cost doesn’t include potential state income taxes.

Important Notes

It would be best to familiarize yourself with your oral treatment plan before using your HSA to cover the bills.

By doing so, you can prevent being surprised by unknown costs. You can ask your provider for a list of qualified oral and other medical expenses. This can serve as a guide for you.

Spending only your HSA to cover accepted dental costs is best. Remember, any non-accepted expenses will be subject to tax, among other penalties.

Tips for Paying Dental Bills With an HSA 

At least this type of account can be used to reduce your oral care expenses.

It’s time you learned how to use it to make such payments. Paying your dental bills through an HSA depends on a few factors. Your healthcare specialist and provider.

However, some dental offices may assist you in filing your claim online or offline. Having been satisfied that your dental costs are covered, you can file a claim with your dentist.

If you deal with a reputable agency, they’ll help you calculate the total value of these perks. Plus, ensure they’re done the right way.

How the IRS Determines Qualifying Dental Procedures

Do you want to know the criteria for picking which oral care services are eligible? Well, you can get such details on the official webpage of the IRS.

You can also get the complete list of services, medications, products, and therapy programs critical to treating specific tooth conditions.

Initial Cost of Dental Care 

It’s excellent to know the cost of tooth procedures. This will let you know if the money in your HSA savings is sufficient to pay your bills.

Now, the cost of oral care hinges on a few elements.

These include location, type of procedure, healthcare facility, and more. You can research at any dentist or oral care facility near you to know the exact costs.

If you have an HSA, you have fewer things to fret about. As you can see above, you can use it to pay for your oral expenses. Use it to get the tooth care you desire to keep smiling.

But remember, there are certain oral services you can substitute with such funds. Please do so to avoid unexpected taxes and fines.