Flexible Spending Accounts (FSAs) can be a great way to make orthodontic treatment work within your budget. Designed to hold pre-tax income to be used for qualifying medical expenses, they reduce what you pay to Uncle Sam while ensuring you have money to cover things insurance won’t. But determining what qualifies as a medical expense can be confusing.
AlignerCo treatment often falls under the FSA umbrella, so you might be able to cover some treatment costs by using your FSA funds. Before you commit to treatment, you should understand how your FSA functions. That’s what we’re here to discuss. By the end of this guide, you’ll have a thorough understanding of FSAs and how they can pay for AlignerCo treatment.
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What Is a Flexible Spending Account (FSA)?
An FSA is an employer-sponsored bank account that holds pre-tax income, lowering your income tax bill, and allowing you to apply the funds to future healthcare expenses. Your employer may make deposits in the account, and you can choose whether to deposit a percentage of your paycheck as well; having an FSA doesn’t require you to use it.
Using FSA funds is fairly easy. In most cases, you’ll have a debit card linked to the account and you’ll use it just like any other bank card. Another option is to pay upfront and then file for reimbursement. As of January 1st, 2023, the limit on FSA deposits is $3,050 per year, so this is the most that should be in the account at any given time, with a few exceptions.
FSAs aren’t ideal in every case. If you don’t have any routine health expenses — frequent office visits and the associated copays, prescription drugs, or therapy — you might not be able to use your funds every year before they expire on December 31st. Though keep in mind you are not required to contribute the maximum amount, or any funds at all, and you can change what you contribute each year based on your anticipated expenses.
How to Get an FSA
FSAs aren’t like a regular account; you don’t simply decide you want one and head to the bank. They come from your employer, and that means you access them through your job. Not all companies offer them, and if you are self-employed, you’re out of luck. If you are currently employed and don’t have an FSA, ask your HR team if you can get one. And if you are looking for a new job, ask about FSAs when discussing benefits.
Can I Use My FSA for AlignerCo Clear Aligners?
Most of the time you can, but not in every case. While there are standard treatments that most FSAs cover, each account is slightly different. Many FSAs classify AlignerCo with similar orthodontic treatments. Some, however, may lump them in with cosmetic treatments like teeth whitening, which typically aren’t covered.
On their website, AlignerCo says “invisible aligners for teeth straightening are an orthodontic service, which is covered by most of HSA & FSA accounts.” Even so, you’ll want to confirm that your specific FSA covers at-home clear aligners before proceeding with treatment.
Do FSA Funds Cover Other Dental/Orthodontic Treatments?
You might expect a straightforward answer here, and while you can typically use FSAs for these treatments, that’s not always the case. Similar to insurance policies, FSA account administrators will classify treatments as either cosmetic or not. Cosmetic treatments are generally not qualifying medical expenses, while preventative, basic, and major treatments almost always are.
This means that things like your twice-yearly dental visits, bridgework, root canals, and fillings qualify while teeth whitening, teeth shaping, and veneers do not. Most dentists and providers consider braces and clear aligners medically necessary, since they correct issues that can lead to tooth decay, gum disease, and other issues. Of course, not every FSA covers every orthodontic treatment, but in most cases, you should be able to apply your funds.
Before using your funds for any treatment, it’s a good idea to verify that it’s a qualifying expense. Otherwise, you might face financial penalties.
What Types of Orthodontic Treatment Can an FSA Cover?
The orthodontic treatments classified as qualifying expenses vary between FSA accounts, so speak with your account administrator to get a definitive answer. With that said, in most cases, in-office treatments qualify across the board. This includes things like Invisalign, SureSmile, 3M Clarity, and braces. Sometimes, you might be asked to submit proof that these are not being used cosmetically, but this is rare.
But what about at-home aligners, like AlignerCo? Many FSA account administrators classify these as qualifying expenses, and since nearly all remote aligner systems have price points lower than the maximum yearly contribution, you might be able to pay for them in full with your funds.
But not all administrators take this approach. Remote clear aligners can only correct mild-to-moderate misalignments, which are sometimes cosmetic changes. To know how your administrator sees them, you’ll need to reach out and get tailored guidance.
Will AlignerCo Help Me Use My FSA?
Yes, but on a very limited basis. If you’re filing a claim for FSA reimbursement, they will provide an itemized receipt and other information you might need to provide. But they won’t fill out your paperwork or communicate with your FSA administrator (or dental insurance provider) on your behalf. If you plan on filing for an FSA reimbursement, make sure you understand the process and documents, since you’ll need to handle them yourself.
If you want a home aligner company that will handle every aspect of FSA and dental insurance reimbursement for you, check out Byte. Their insurance team will take care of the paperwork for you, so you can kick back and wait for your reimbursement.
How To Use FSA Funds for AlignerCo Treatment
FSAs can disperse funds in two ways: via card or reimbursement. Most FSAs will issue you a card that’s linked to your account. You use this card just like a regular credit or debit card and the funds will be approved if you’re using it for an eligible expense (although you might still need to supply receipts or other verification). When ordering AlignerCo treatment, simply enter your card information on the payment page.
Anyone who doesn’t have a linked card has to pay for treatment and then file a claim for reimbursement. AlignerCo will provide receipts for your purchase so you can verify it with your FSA. Your employer or FSA administrator can provide the documents you need to submit, and they might be able to walk you through the process too.
What If I Have Dental Insurance, Too?
If you have dental insurance that covers at-home aligners and an FSA, you’re in good shape, because you can use both to pay for your AlignerCo. But not all dental insurance plans cover online aligner services. If your plan includes orthodontic benefits, you might receive coverage, but you might not. Some insurance plans cover AlignerCo, but the company doesn’t have any partnerships with specific providers like Byte and SmileDirectClub do. And they won’t help you check to see if your treatment is covered, so you’ll have to reach out to your insurance company.
Even when a plan covers home aligners, they rarely pay for more than 50%, so you’ll still have out-of-pocket costs. Let’s say your insurance covers 30% of your treatment. You can use an FSA to pay for the remaining amount (or part of the remaining amount). You shouldn’t choose to use an FSA instead of dental insurance, though, since FSA funds are technically your own money. Use both if you have the chance! Unless you’re saving your FSA funds for other treatments down the road.
Flexible Spending Accounts vs. Health Savings Accounts (HSAs)
FSAs and HSAs have a lot in common. Both are savings accounts, hold pre-tax income, and are dedicated to paying for qualified medical expenses. But there are also a lot of differences between them.
FSA | HSA | |
---|---|---|
Who qualifies | Anyone whose employer offers them as a benefit | Only people with a qualifying high deductible health plan (HDHP) |
2023 contribution limit | $3,050 for an individual | $3,850 for an individual, $7,750 for a family |
Contribution adjustments | Only during open or special enrollment periods | Anytime |
Expiration | Dec. 31 every year | None, unused funds will roll over |
Account ownership | Owned by the employer. You lose it if you change jobs. | Owned by the individual and follows you during employment changes. |
Using funds | Might not have access to funds for non-medical expenses | Can withdraw funds for non-medical expenses, but must pay a 20% penalty |
Just like FSAs, you can usually use HSA funds to pay for AlignerCo treatment. Again, it depends on your specific administrator, so you’ll want to check the details before signing up for either one. And keep in mind that if you have both an FSA and HSA, you can use the funds in both accounts as long as you don’t double bill.
Final Thoughts
AlignerCo treatment is already affordable, but an FSA can make the price even more manageable. They might not help you through the process as much as some competitors, but they’re still eligible for coverage.
Just be sure to check with your employer or FSA administrator on your account details before committing to treatment. You might get your new smile for a lot less than expected!
Frequently Asked Questions
Are FSAs voluntary?
Yes, even if an FSA is a standard part of your benefits package, you don’t have to contribute any money. You can also wait to start contributing until you feel you’ll have a need for the funds.
Do employers contribute money to FSA accounts?
Not all will, but many do. When they do, how much they contribute varies as well. Some opt for a set amount while others match your contributions. This means you might have money in your account even if you never add any yourself.
What are the biggest differences between HSAs and FSAs?
There are two primary differences. The first is that FSAs are tied to your employer, and if you change companies, you lose the money in them; an HSA belongs to you and moves with you as long as you have a high-deductible health plan. The second is that HSA funds roll over from year to year while FSA funds disappear on January 1st.
If I have both an FSA and an HSA, which should I use?
Before you use either, start with your insurance benefits. Once you exhaust these, use your FSA funds since they expire each year. Then, if there is a remaining balance, pay with your HSA account. Just make sure you don’t double-bill any part of your treatment.
If I change jobs, do I lose my FSA funds?
If your new job is at the same company, you should keep your account. If you are changing employers, you will lose the account and any funds in it.
How do FSA administrators determine if something is cosmetic or not?
In general, if a treatment positively affects your oral or overall health, it is a qualifying medical expense. If it only improves aesthetics, it is cosmetic.
Are FSA funds easy to use?
Yes. If you have a debit card for your account, they are especially easy to use. You just enter the card information when checking out online or use it at the terminal in person. If you file for reimbursement, this is a little more complicated but just requires some paperwork.
What happens if I use my funds for a non-qualifying expense?
First, you’ll lose tax-free status on that money and need to pay Uncle Sam. Then, you might be charged an additional 20% tax as a penalty. Finally, your employer might also charge fees. So it’s always wise to verify if an expense qualifies before using FSA funds for treatment.
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