Health Care Savings Account Federal Way, WA
Opening a health care savings account can help people cover their out-of-pocket costs. People can use these unique, tax-advantaged accounts to pay for current or future healthcare expenses for you, your spouse, and your dependents. When combined with a high-deductible healthcare plan, people can receive tax advantages to save money in the long-run.
If you are looking to save money while taking care of your oral health, a health care savings account, HSA, can help. Our team at Smile Center Dental Care can help you learn more about HSAs and other coverages. Call us at (253) 336-0023 to learn more about our services or schedule an appointment.
Understanding Health Care Savings Accounts
A health savings account (HSA) is a savings account that lets people set aside money on a pre-tax basis to pay for qualified medical expenses. An HSA is complementary to a health care plan that has a high deductible. People can save money in an HSA before taxes and use the funds to pay for eligible health care expenses, including expenses the health plan does not cover. For example, people can use their HSA savings to cover health care costs until reaching the plan's deductible.
People can use their HSA funds to pay the copayment until reaching the out-of-pocket limit. Taxes do not apply to the money put into an HSA. Patients can invest a portion of the money in an HSA if maintaining a balance of $1,000 or more. For this reason, many people use part of their HSA to save for retirement.
“A health savings account (HSA) is a savings account that lets people set aside money on a pre-tax basis to pay for qualified medical expenses.”
HSA Pros and Cons
HSAs offer several benefits. People can withdraw money to pay for procedures, deductibles, copayments, or other medical expenses. Any money left in the account at the end of the year will roll over into the next year. Even if a person's health care coverage changes due to a change in jobs, as long as they continue with a high-deductible plan, funds in the account continue to grow, tax-free. If a person changes jobs, they can enroll in a new healthcare plan and maintain access to their existing HSA, even if the new healthcare plan does not qualify. Additionally, most people can use a debit card or checks to access their funds easily.
HSAs also have some disadvantages that people should consider. One of the biggest downsides to an HSA involves the requirement to have a health insurance plan with a high deductible. Although this coverage offers lower premiums, high deductibles often become hard to come up with if facing a significant medical issue. With increasing costs of health care premiums and deductibles, it may be challenging to add more money to one's health savings account. Some people with high deductibles hesitate to see the doctor to seek treatment due to the high costs. They may feel as if they must keep the money in their HSA to save for retirement — thus putting off important medical care.
“If a person changes jobs, they can enroll in a new healthcare plan and maintain access to their existing HSA, even if the new healthcare plan does not qualify.”
Financial Benefits of an HSA
An HSA not only helps save on health care expenses but comes with tax advantages. One advantage is that people do not have to pay taxes on contributions to their HSA. If a person adds money to their HSA through their employer, the funds are taken before taxes, lowering taxable income. People who add money to their accounts personally will have deductions from their gross income when filing income taxes at the end of the year.
Anything earned on the investment of funds also remains tax-free. If using the withdrawals to pay for qualified medical expenses, no taxes and penalty fees apply. Funds withdrawn for medical expenses are not taxed. At age 65, HSA funds are available for use without penalty. After this age, people can use their HSA savings as retirement money and withdraw funds from an HSA without incurring tax penalties, even if used for non-medical expenses. However, the money would still be subject to income tax.
“An HSA not only helps save on health care expenses but comes with tax advantages.”
Check out what others are saying about our dental services on Google: Health Care Savings Account in Federal Way, WA
Finding Out if HSA Covers a Treatment
People with HSA accounts may be wondering what types of dental services are covered. With an HSA, there is a big difference between services that diagnose, treat, and prevent. People should contact their provider for more information on covered dental treatments.
Some procedures may have a copayment, so it is also important to check with dental insurance providers to determine the out-of-pocket costs. Not all HSAs cover the same things. People with questions about coverage should contact their employer's benefits department, their HSA provider, or the third-party payer of their health plan.
“People with questions about coverage should contact their employer’s benefits department, their HSA provider, or the third-party payer of their health plan.”
Questions Answered on This Page
Q. What is a health savings account?
Q. What are the pros and cons of an HSA?
Q. What are the tax benefits to having an HSA?
Q. Do HSAs cover dental treatments?
Q. What dental treatments does an HSA cover?
People Also Ask
Q. Who is the billing specialist?
Q. Why is it important to find the right general dentist?
Q. When is the right time to open an HSA?
Treatments Covered by an HSA
Dental services and HSA eligibility can vary; however, some common and necessary dental procedures are eligible. HSAs cover treatments that diagnose, treat, mitigate, cure, and prevent disease. HSAs cover most dental treatments deemed medically necessary, such as:
- Regular cleanings and routine visits
- Fillings
- Root canals
- Extractions
- Crowns
- Dentures and bonding
Even with an HSA, there may be a copayment for the patient. HSAs do not cover cosmetic dental treatments such as teeth whitening or regular dental expenses, such as toothpaste, toothbrushes, dental floss, and mouthwash.
“HSAs cover treatments that diagnose, treat, mitigate, cure, and prevent disease.”
Frequently Asked Questions
Q. Can I use my HSA funds on non-medical-related expenses?
A. Yes. However, using your HSA funds on non-eligible expenses will require you to be taxed on said expenses, as the initial contributions went tax-free. You may also face a 20% tax penalty if you are under the age of 65.
Q. Can I have more than one HSA?
A. Yes. Though you cannot have an HSA in conjunction with an FSA or HRA, you can open as many HSA accounts as you want. However, annual IRS contribution limits may still apply.
Q. What is the monthly or annual fee for an HSA?
A. The monthly fee for an HSA tends to be less than $5 a month, or around $30 a year. However, many HSAs do not require monthly payments, and others may waive or reduce these fees if enrollees maintain a minimum balance.
Q. What is the difference between an FSA and an HSA?
A. FSA funds are available on a "use-it-or-lose-it" basis, while HSA funds carry over from year to year. HSA funds are also entirely in the enrollee's control, meaning they stay with the enrollee even when they change jobs or move to a different state.
Q. What happens to my HSA when I change health insurance policies?
A. Since your HSA funds are entirely yours, your HSA will remain unchanged even if you change your health insurance plan. However, you will only be eligible to make future contributions to your HSA if you choose a qualifying plan.
Scan here to view this page, Health Care Savings Account, on mobile
Dental Terminology
Call Us Today
HSA can help you lower the costs of dental treatment. Our team at Smile Center Dental Care can help. Call us today at 253-336-0023 to learn more about our services or schedule an appointment.
Helpful Related Links
- American Dental Association (ADA). Glossary of Dental Clinical Terms. 2024
- American Academy of Cosmetic Dentistry® (AACD). Home Page. 2024
- WebMD. WebMD’s Oral Care Guide. 2024
About our business and website security
- Smile Center Dental Care was established in 2005.
- We accept the following payment methods: American Express, Cash, Check, Discover, MasterCard, and Visa
- We serve patients from the following counties: King County and Pierce County
- We serve patients from the following cities: Federal Way, Auburn, Kent, Des Moines, Tacoma, Fife, Milton, Edgewood, SeaTac, and Algona
- National Provider Identifier Database (1770035289). View NPI Registry Information
- Norton Safe Web. View Details
- Trend Micro Site Safety Center. View Details
Scan here to open directions to Smile Center Dental Care on mobile
Back to top of Health Care Savings Account
Related Posts
How Same-Day Dental Implants Are Possible
Permanent tooth loss can be devastating, affecting your appearance as well as your oral and overall health. Fortunately, dental implants give people the opportunity to fully restore their smile with a prosthetic replacement. There are many benefits to choosing dental implants to replace lost teeth, including: Lower risks for bone loss Natural-looking results Protection from…
Seek An Emergency Dentist After A Dental Injury
Medical hospitals are often unequipped to handle dental emergencies; this is when an emergency dentist becomes necessary. Recognizing the signs of a dental emergency is important for patients to get the help they need right away. Once patients know they are dealing with a dental emergency, they can look up “emergency dentist near me” instead…
Preventative Services From A General Dentist
General dentists' primary aim is to ensure optimal oral health, meaning the entire mouth. Therefore, they recommend various services to ensure the longevity of your natural teeth and surrounding structures. Take a look at the five preventative services we offer.Routine evaluations are recommended for all individuals, regardless of age. The American Dental Association, or ADA,…
Explore additional topics covered on our website:
Call Us Today
Scan here to call Smile Center Dental Care on mobile