Do FSAs Cover Online Aligners Like SmileDirectClub?

If you have a Flexible Spending Account (FSA), your tax-free health funds won’t last forever, which means you’ll need to spend them every year or lose them. What can you spend them on? A lot, actually. FSAs are established through your employer and you can use the money you deposit for a variety of dental or orthodontic treatments.

Companies like SmileDirectClub and Byte, which use remote dentists to design and oversee clear aligner treatment, might not be covered by every insurance provider, but they might still accept FSA payments. Wondering where to start? Don’t even know what an FSA is? This is your go-to guide.

What Is a Flexible Spending Account (FSA)?

An FSA is a savings account that allows you to deposit pre-tax money for future healthcare expenses. You can choose to deposit a certain percentage of your paycheck, and your employer might contribute as well, although it’s not required. You can link an FSA to a debit card and use it just like you would any other card. Or, you can file for reimbursement on eligible expenses. According to the IRS, the current limit on FSA deposits is $3,050 per year, so you shouldn’t plan on having more than that available for treatments.

People who have routine health expenses—like prescription drugs and office visits for chronic conditions—often find FSAs helpful, since they have a set number of tax-free dollars to cover those monthly costs. But even if you have intermittent expenses, you can simply choose to deposit less money in your FSA and use it to cover whatever comes up.

Remember that FSA money does not roll over from year to year. It’s a “use it or lose it” system. So if you’re approaching the year’s end and still have funds left, you’ll want to find something to spend them on.

How to get an FSA

You can only set up an FSA if your employer offers it as an option. When the benefits coordinator goes over your options, they will let you know whether you have the option of getting an FSA. If you’re interested, your employer will provide the forms you need to get started.

Does an FSA Cover Dental/Orthodontics?

You can use FSA dollars for a wide variety of dental treatments and procedures. The specific qualifying treatments may vary based on your plan, but FSAs can typically cover preventative care, basic procedures, and other dental procedures.

You can also use it for prescription drugs if you need them. Your FSA won’t cover cosmetic procedures, though, so teeth whitening, veneers, etc. could be out of the question. Orthodontic treatment is almost always considered medically necessary, although certain rare cases might be cosmetic. It depends on your specific FSA.

What Types of Orthodontic Treatment Can an FSA Cover?

You can use FSA funds for just about any non-cosmetic orthodontic treatment. How are cosmetic treatments determined? It’s different for various FSAs, so you’ll need to check with your specific plan and employer.

In-office treatments like braces and Invisalign usually correct more severe misalignments and are eligible for FSA payments. Smaller dental shifts that aren’t medically necessary, however, may not qualify.

Can I Use My FSA for Online Clear Aligners?

In many cases, yes. But not always. Most at-home teeth straightening services will accept payments from FSAs. However, some FSAs may consider online clear aligners cosmetic, and cosmetic dentistry is not an eligible expense.

Byte, SmileDirectClub, NewSmile, and AlignerCo all say on their websites that you can use an FSA to pay for clear aligners, although you should check with your employer on the specific plan details before committing to treatment. If you’re good to go, you can use an FSA card to pay like you would with a debit card, or you’ll need to pay and then file for a reimbursement.

How To Use FSA Funds

You may be able to attach your FSA to a card. You can use this card just like you would a debit card, although it only works for qualifying purchases.

Otherwise, you would need to pay for your treatment, then file for reimbursement through your FSA. Your employer and/or the FSA provider will have the paperwork you need, and they may even help you complete and submit it.

If you go with Byte, they’ll check on coverage for you, file any necessary paperwork, and even handle the appeals process, if it comes to that. You won’t need to worry about a thing. Simply contact your Byte advisor to get the reimbursement ball rolling.

FSAs and Dental Insurance

Even though you’ll often enroll in both at the same time, an FSA is not the same thing as dental insurance. An insurance plan will cover certain treatments out of the insurance company’s pocket as long as you pay your monthly premiums and have met your deductible. An FSA, on the other hand, functions somewhat like a normal savings account. You deposit your own money (pre-tax) and you can use it later to pay for treatments.

You can use your FSA and dental insurance to pay for orthodontics simultaneously if you’d like. Let’s say your insurance covers 50% of your orthodontic treatment. That’s great! But you’ll still have some out-of-pocket expenses. If orthodontics are eligible under your FSA, you can use that account to pick up the tab.

You can’t, however, use an FSA to pay your monthly dental insurance premiums.

Flexible Spending Accounts vs. Health Savings Accounts

They’re similar in name, but not always similar in function. Here are some of the differences you should know.

Just like FSAs, you can usually use HSA funds to pay for orthodontic treatment, even at-home clear aligners. Again, it depends on your specific plan, so you’ll want to check the details before signing up for either one.

Final Thoughts

If you have money sitting in your flexible spending account, consider using it on your online aligner treatment, especially if the end of the year is approaching. And if you’re still unsure about how to use it, consult your employer, insurance provider or, if you have Byte, your Byte advisor. They’ll handle all the paperwork and communications for you.