Hsa For Orthodontics

Freytag Orthodontics | Can You Use HSA for Orthodontics?

Posted On: March 30, 2023

Inflation is on the rise, heavily impacting the cost of healthcare. It’s happening all across the nation, as well as here in Tucson. Luckily though, you likely won’t have to ride out the storm if you have a Health Savings Account (HSA).  What are the guidelines surrounding the use of an HSA for orthodontics?

In most – non-cosmetic – cases, you can use your HSA funds for orthodontic treatment. However, there are some factors to consider first and foremost.

What Is an HSA and How Does It Work?

What Is a Health Savings Account (HSA)?

An HSA is a tax-advantaged savings account that allows you to set aside pre-tax dollars to pay for qualified medical expenses.

How Does an HSA Work?

With your HSA, you can pay for qualified medical expenses, including deductibles, copays, and other out-of-pocket expenses, as well as certain medical procedures like orthodontic treatment.

Requirements to Have an HSA

To be eligible to contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP). This is a type of health insurance plan with a higher deductible than traditional plans. HDHPs typically have lower monthly premiums, which can make them an attractive option for people looking to save money on healthcare costs.

If you have an HSA and are enrolled in an HDHP, you can use your HSA funds to pay for orthodontic treatment.

HSA Contribution Limits

Yes, there are limits to how much you can contribute to an HSA each year. Contribution limits for families are higher than for individuals, and for those over 55 years of age, additional amounts can be contributed annually.

HSA Expense Tracking

It’s also important to keep careful records of your HSA transactions, including any expenses related to orthodontic treatment. This can help you avoid any potential issues if you’re audited by the Internal Revenue Service (IRS).

HSA for Orthodontics: Which Treatments Are Included?

HSAs can be used to pay for many orthodontic treatments. However, it’s important to note that not all orthodontic services may be considered a qualified medical expense. For example, cosmetic procedures like teeth whitening or veneers are generally not considered qualified expenses.

How Does the IRS Define a “Qualified” Expense?

According to the IRS, expenses for medical care include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. This includes orthodontic treatment, which is used to correct misaligned teeth and jaws.

In general, services that are necessary for the health of your teeth and gums can be paid for through your HSA. This typically includes traditional braces, clear aligners, and other orthodontic treatments used to correct bite problems, overcrowding, or other dental issues. Be sure to contact your orthodontist for more information.

Ready, Set, Smile!

HSAs can be an extremely economical tool for orthodontic patients who want to pay for their treatment with pre-tax dollars. While not all insurance plans cover orthodontic treatment, HSAs can be used to pay for this and other qualified medical expenses, making it a great option for those who want to save money on healthcare costs.

Are you ready to meet with an orthodontist in Tucson? At Freytag Orthodontics, we’re always welcoming new patients, and better yet – your first exam is free! We offer both in-office and online options for your orthodontic exam; schedule an appointment today.