While researching teeth-straightening treatment costs, you might be sitting there wondering how to manage the high prices. Then you remember: you’ve been withholding income every month in a health savings account (HSA). These pre-tax funds can be a reserve of payments for your dental and orthodontic expenses, easing the potential stress of a high price tag.
Considering Byte at-home aligners? You can likely use an HSA to pay for those too. Each HSA has different policies and qualifying expenses, but they often cover online aligner services. And Byte’s insurance team will help answer questions and complete necessary paperwork along the way. This guide will give you all the info you need about using your HSA to pay for Byte treatment.
Table of Contents
Our #1-Recommended Clear Aligner Service
On top of accepting HSA funds, Byte is offering our readers a special discount to make treatment even more accessible.
If you decide Byte is the right treatment option for you, be sure to take advantage of this special promotion. Byte is currently offering its impression kit for just $17.95 ($80 off its list price). In addition, as part of this offer Byte will include with your impression kit a free whitening pen to help you brighten your teeth on the go. Enter the code SMILEBRYTE at checkout to claim this promotion.
What Is a Health Savings Account (HSA)?
HSAs are savings accounts that allow you to save pre-tax income and then apply it to qualifying medical and dental expenses. You can make your HSA deposits a regular payroll deduction or deposit funds whenever you’d like.
Not everyone can have an HSA. To qualify for this type of account, you need to have a high-deductible health plan. As of January 1st, 2023, this means a plan with a deductible of at least $1,500 for an individual or $3,000 for a family. HSAs are available through employers but you can also open one on your own, making them a great option for the self-employed.
HSA funds can be applied toward a wide scope of treatments, as loosely defined by the IRS. However, since they don’t fully outline every qualifying expense, there is some room for interpretation. This means you’ll need to rely on your account administrator to determine whether or not to use your funds on a given item or treatment.
This doesn’t mean that you can only use funds for qualifying medical expenses. In fact, you can even withdraw money whenever you’d like to use it on anything you want — it just incurs a 20% penalty.
The main limit to be aware of is how much you can contribute each year. As of January 1st, 2023, that’s $3,850 for an individual and $7,750 for a family. That might be more than you can spend on health expenses in a given year, but HSA funds roll over each year, letting you build your savings to prepare for the unexpected. And once your HSA reaches a certain amount, you can also choose to invest those funds in mutual funds or other options, depending on your account’s policies.
How to Get an HSA
Step number one in getting an HSA is having a high-deductible health plan. The IRS changes the threshold for this often, so you’ll need to check this each year. It’s possible that one year, your plan will qualify, then come January 1st, it won’t.
If your plan qualifies, you have two ways of getting an HSA: through your employer or on your own. Employer-sponsored plans are the most common. You just open the account during your open enrollment period at work, which is typically in the fall. Your HR department should walk you through the process and provide the paperwork.
Of course, not everyone with a high-deductible health plan has an employer. Luckily, the self-employed can open an HSA on their own. Banks, brokers, credit unions, and insurance companies all offer accounts to individuals.
Do HSA Funds Cover Dental/Orthodontics?
HSA funds can be applied to most treatments that improve your oral or overall health. This means preventative, basic, and major care can be paid for with HSA funds without incurring a penalty. Your semi-annual cleanings? Use those HSA funds. Same goes for fillings, root canals, dentures, and more.
But you can’t use HSA funds for everything, even some things that can have a positive impact on your health. For example, toothbrushes and over-the-counter toothpaste are two essential oral healthcare products, but they aren’t eligible. And treatments that are strictly cosmetic, like teeth whitening, can’t be paid for with HSA funds without a penalty.
What Types of Orthodontic Treatment Can an HSA Cover?
Orthodontics falls into a gray area when it comes to HSA eligibility. Most of the time, orthodontic care is considered major treatment, allowing you to use HSA funds to pay for it without a penalty. Teeth that are in proper alignment are easier to clean, less likely to experience uneven wear, and better able to chew food — and that means aligners — like Invisalign, 3M Clarity, and Candid — and braces can improve both oral and general health.
But not every misalignment causes physical harm. Sometimes, a small gap, slight crowding, or minor twisting is just cosmetic in nature, and that means fixing it is cosmetic, too. Every HSA account administrator is free to interpret things as they see fit so you really should verify eligibility before paying for orthodontics.
Can I Use My HSA for Byte Clear Aligners?
Most HSAs consider clear aligners to be a qualifying expense, and this often includes home aligners like Byte. Occasionally, they’ll lump at-home aligners in with cosmetic procedures, so you’ll need to check your account’s qualifying expense list to be sure.
Byte’s website says that all their impression kits, aligners, and retainers “are a covered expense for almost all flexible spending and health savings accounts.” So, chances are, you’ll be able to use your HSA to pay for all or part of your treatment.
Will Byte Help Me Use My HSA?
Byte goes above and beyond to help customers take advantage of their HSA funds and dental insurance benefits. Their insurance team will handle every part of the process for you and answer any questions you might have about using your HSA funds. And if there’s any paperwork involved, they will provide and complete it for you.
Byte is the only at-home aligner company that handles the entire insurance process. Other companies might check to see if your plan covers their treatment, but leave you to handle the specifics on your own.
How To Use HSA Funds for Byte Treatment
There are a few different ways to access your HSA funds. Some accounts issue a linked card that you can use just like a debit or credit card. As long as you use it for a qualifying expense, you’ll have no issue. If you use it for an unqualified expense, however, those funds will incur a 20% penalty and you’ll need to pay income taxes on them. You can simply enter your card information at checkout or contact your Byte advisor for assistance.
Some accounts will issue checks that are specifically linked to your account. Others will let you use an online account to pay bills. You might also be able to reimburse yourself by writing an HSA check to yourself or transferring money directly into a personal account. You can only reimburse yourself, however, for expenses that occurred after you established your HSA.
What If I Have Dental Insurance, Too?
Numerous dental insurance plans provide coverage for Byte treatment too. They have partnerships that bring them in-network with Anthem and Guardian. If your plan includes orthodontic benefits, insurance might cover your Byte aligners.
But orthodontic benefits often come with age limits, lifetime spending limits, and/or waiting periods. On top of that, they often only cover a certain percentage of treatment. This means that you’ll still have out-of-pocket expenses, and you can cover these expenses with your HSA.
The best part is that Byte will handle the whole process. Their website says: “Just utilize your major credit/debit card associated with your FSA to pay for your treatment. Then, if you have qualifying orthodontic coverage included in your dental plan, we’ll help you with your insurance claim form to get the proper reimbursement.”
Health Savings Accounts vs. Flexible Spending Accounts (FSAs)
Sometimes, these things can feel like alphabet soup. And in truth, there is a lot of overlap between FSAs and HSAs. Both types of accounts hold pre-tax income and are used to pay for qualifying medical expenses. However, there are differences between them.
| HSA | FSA | |
|---|---|---|
| Who qualifies | Only people with a qualifying high deductible health plan (HDHP) | Anyone whose employer offers them as a benefit |
| 2023 contribution limit | $3,850 for an individual, $7,750 for a family | $3,050 for an individual |
| Contribution adjustments | Anytime | Only during open or special enrollment periods |
| Expiration | None, unused funds will roll over | Dec. 31 every year |
| Account ownership | Owned by the individual and follows you during employment changes. | Owned by the employer. You lose it if you change jobs. |
| Using funds | Can withdraw funds for non-medical expenses, but must pay a 20% penalty | Might not have access to funds for non-medical expenses |
As is the case with HSAs, FSA funds can typically be applied to Byte treatment. It just depends on how your specific account administrator interprets things. Verify your limits before using funds to avoid penalties.
Final Thoughts
Byte treatment is already a great value, and if you have a health savings account, it can be even more accessible. Get in touch with your Byte advisor if you’re interested in using your HSA to pay for treatment. Their team will take care of all the details for you, so you can kick back and wait for your aligners to arrive.
Frequently Asked Questions
Are HSAs voluntary?
Yes, though in some cases, they might be an automatic part of your benefits package at work. You will have the option to contribute or not, so in this way, they are voluntary.
Do employers contribute money to HSAs?
It isn’t a requirement, even when the account is through your job. However, some employers do add funds to their employees’ HSA accounts. If yours does, this means you can build your healthcare savings without needing to contribute directly. If you do, make sure your and your employer’s combined contributions don’t exceed the yearly limit.
What are the biggest differences between HSAs and FSAs?
There are two primary differences between these account types. First, who owns them. HSAs belong to you while FSAs are actually your employer’s. They can’t access the funds but if you leave your company, you lose the account and the money inside. The second is what happens to the money on January 1st each year — FSA funds disappear while HSA funds roll over.
If I have both an FSA and an HSA, which should I use?
Don’t start with either; begin by exhausting your insurance benefits, if you have orthodontic coverage. Once you run through these, move on to using your FSA funds before they expire at the end of the year. If you still have remaining expenses, use your HSA to pay. Just be careful that you don’t double-bill between these options.
If I change jobs, do I lose my HSA funds?
No, your HSA belongs to you. If your employer was contributing money, this will stop, but any money already in the account is yours to keep. The only reason you should lose access to your HSA and the money within it is if you switched health insurance plans to one with a low deductible.
How do HSA administrators determine if something is cosmetic or not?
The IRS issues guidelines, which the administrators then interpret and apply to their coverage. In most cases, if a treatment or product has a positive impact on your oral or general health and isn’t a general self-care item (how things like toothbrushes are classified), HSA funds can be used to pay for it.
Why are in-office treatments more likely to be considered qualifying medical expenses?
These treatments are more likely to have a positive health impact than ones you complete at home. Additionally, doctors, dentists, and orthodontists can submit paperwork verifying that there are medical benefits to the treatments they render, which isn’t always possible with self-administered care.
Are HSA funds easy to use?
Yes, especially if you have a debit card for your account. You just need to enter the card info at checkout or use it at the terminal if paying in person. You can also file for reimbursement, and in some cases, use checks tied to the account. For most, a debit card is the easiest option.
What happens if I use my funds for a non-qualifying expense?
You will need to pay taxes on the money since it was deposited pre-tax. Then, you will be charged a 20% fee on top of that.
Join The Discussion: