Medical expenses can come as a unexpected burden if you don’t have proper coverage. Luckily, you may be eligible to enroll into a Health Savings Account or a Flexible Spending Account based which can lighten the load of some expenses and these plans can come out of your pay – pretax!
Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are essentially personally savings accounts. However, the funds can only be used for qualified medical expenses.
Both accounts work similarly and are usually withdrawn from an employee’s check, pre-tax which also reduced their tax liability. The employee also can choose how much they contribute to their account.
Some employers offer both HSA and FSA accounts for employees, depending upon the insurance plan they offer.
It can be easy to confuse the two accounts but they do have distinct differences. Before opening your own account, you want to be sure which best suites your needs. The table below compares the differences between both.
Funds you withdraw from your HSA account are tax-free when used to pay for qualified medical expenses. The expenses must be used for a medical need or preventive care.
Any funds withdraw for a non-medical use, or non-qualifying medical expense will be taxed at your income tax rate in addition to 20%, if you’re under the age of 65.
Below is a list of commonly used qualified expenses:
Like Health savings accounts, Flexible spending accounts can be used for a variety health related services, in addition to health related products.
Some of the eligible health care treatments and services include:
Many dental offices today are offering alternatives for patients that do not have dental insurance. By offering an internal membership plan, dental practices are able to bypass insurance companies and offer deep discounts for patients that do not have insurance.
A typical in-office savings plan will cover all preventative services and offer discounts on other services, like perio maintenance, restorative and even cosmetic for a set price for the year. Since there is no middle man, there are no waiting periods and you’re instantly approved. If you currently are enrolled in a FSA or HSA program, we have great news for you. These plans are an eligible expense!
Contact our office or CLICK HERE TO VIEW THE ADVANCED DENTAL MEMBERSHIP PLAN to learn more about our in-house membership and remember, most funds expire at the end of the year. Be sure to use them before you lose them!
The content on this blog is not intended to be a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of qualified health providers with questions you may have regarding medical conditions. Dr. Mike Maroon owns & operates Advanced Dental with offices in Berlin, CT & Cromwell CT. More information about his dental practice can be found at www.AdvancedDental.com. He can be reached