How to Use Your HSA Benefits with Dental Insurance

A Health Savings Account (HSA) can be a valuable tool for managing dental expenses while maximizing tax savings. Whether you need routine preventive care or a major dental procedure, understanding how to use your HSA effectively can help you reduce out-of-pocket costs. 

Below we’ll cover everything you need to know about using your HSA for dental care — including what’s covered, how it compares to an FSA and strategies to get the most out of your savings. 

What is an HSA?

A Health Savings Account is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) pay for qualified medical expenses. Funds in an HSA can be used for a variety of healthcare costs, including dental treatments, vision care and prescriptions. Unlike Flexible Spending Accounts (FSAs), HSA funds roll over from year to year, making them a valuable long-term savings tool for healthcare expenses.

Benefits of an HSA

• Tax advantages: Contributions to an HSA are tax-deductible, and any interest or investment growth is tax-free. Withdrawals for qualified medical expenses are also tax-free.
• Rollover & flexibility: Unlike FSAs, HSA funds do not expire at the end of the year. This allows account holders to save and invest for future healthcare expenses.
• Ownership & portability: An HSA belongs to the individual, not the employer, meaning you keep the account even if you change jobs or dental plans.
• Diverse use cases: Funds can be used for a wide range of medical expenses, including dental procedures like cleanings, fillings, crowns and even orthodontics.
• Retirement savings boost: After age 65, HSA funds can be withdrawn for any purpose without penalty, though non-medical withdrawals will be subject to regular income tax.

This combination of benefits makes HSAs an excellent tool for managing healthcare expenses while maximizing tax savings.

What dental care is and isn’t covered with an HSA

An HSA offers a great way to save on out-of-pocket dental expenses, but not all treatments qualify. Understanding what’s covered — and what isn’t — can help you make the most of your HSA funds while avoiding unexpected costs.

HSA-eligible dental expenses

The IRS allows HSA funds to be used for qualified medical expenses, which include many essential and preventive dental services, such as:

• Routine cleanings and exams: Preventive care like checkups, fluoride treatments and x-rays.
• Fillings and extractions: Necessary restorative procedures to treat cavities or remove damaged teeth.
• Crowns, bridges and dentures: Restorations that help preserve oral function.
• Root canals: Treatment for infected or damaged teeth.
• Periodontal treatments: Gum disease treatments, including scaling and root planing.
• Orthodontics (in some cases): Braces or aligners may be eligible if deemed medically necessary.

Non-eligible dental expenses

While HSAs cover many essential treatments, certain expenses are not considered medically necessary and therefore aren’t eligible, including:

• Cosmetic procedures: Teeth whitening, veneers and bonding purely for aesthetics reasons.
• Elective orthodontics: Braces or aligners for cosmetic improvement without medical necessity.
• Non-prescription dental products: Over-the-counter toothpaste, mouthwash and whitening strips.
  

If you’re unsure whether a procedure qualifies, check with your HSA provider or consult IRS guidelines to ensure your expense is covered.

HSA vs. FSA for dental expenses

Both HSAs and FSAs help cover out-of-pocket dental costs using pre-tax dollars. However, there are key differences between the two that can impact how and when you use your funds.

If you have access to both an HSA and an FSA, you may be able to use them strategically — like using your FSA for immediate dental needs and saving HSA funds for future expenses.

How to maximize your HSA for dental care

Your HSA is more than just a way to cover medical costs — it’s a powerful financial tool that can help you save money on dental care while planning for future expenses. Here’s how to make the most of your HSA for dental treatments.

1. Plan ahead for major procedures

If you anticipate needing costly dental work like crowns, implants or orthodontics, start contributing regularly to your HSA. Since funds roll over each year, you can build up savings over time to cover expensive treatments without financial strain.

2. Use your HSA for preventive care

Routine cleanings, exams and early treatment of dental issues can prevent more expensive problems down the road. Since preventive services are HSA-eligible, use your funds to stay on top of checkups and avoid costly procedures later.

3. Take advantage of tax-free growth

HSA funds can be invested, allowing your savings to grow tax-free over time. If you don’t need immediate dental care, consider letting your balance grow so you’ll have more funds available for future dental or medical expenses.

4. Keep records of your expenses

While you don’t need to submit receipts to your HSA provider, keeping records of your dental expenses is essential in case of an IRS audit. Store invoices and receipts for all HSA-eligible treatments.

5. Combine your HSA with dental insurance

HSAs work well alongside dental insurance by covering out-of-pocket costs like copays, deductibles and non-covered treatments. Review your policy to see where your HSA can help fill coverage gaps.

Is it a good idea to buy a second dental plan?

If your current dental insurance doesn’t fully cover your needs, you might wonder if purchasing a second plan is a smart move. While it can provide additional coverage, it’s important to weigh the benefits and potential drawbacks before making a decision.

Pros of a second dental plan

• Increased coverage: A second plan may help cover costs that your primary plan doesn’t, reducing your out-of-pocket expenses.
• Lower out-of-pocket costs: If both plans coordinate benefits effectively, you might owe less for major procedures.
• More provider options: Having two plans may give you access to a wider network of dentists.

Cons of a second dental plan

• Coordination of benefits can be complex: Insurance companies have specific rules about which plan pays first, and some expenses may not be fully covered.
• Additional premium costs: Paying for two plans could outweigh the savings if the extra coverage isn’t substantial.
• Limitations and exclusions: Many plans have waiting periods, annual maximums or restrictions that could reduce the financial benefit of having dual coverage.

Before buying a second plan, review your current benefits, estimate your expected dental costs and explore alternative savings strategies to determine if it’s the right financial choice.

How else can I save on dental expenses?

Even with dental insurance and an HSA, out-of-pocket costs can add up. Fortunately, there are several ways to reduce your expenses while still getting the care you need.

1. Take advantage of preventive care: Regular cleanings and exams help catch issues early and prevent costly treatments. 
2. Compare prices and negotiate costs: Get quotes from multiple dentists, especially for major procedures, and don’t hesitate to ask about discounts.
3. Use a dental discount plan: Dental discount plans provide reduced rates on services for a membership fee.
4. Look for in-house membership plans: Many dental offices offer their own savings plans on preventive care and other treatments for uninsured patients.
5. Use your HSA wisely: Maximize your HSA contributions and plan ahead for any major procedures to help cover out-of-pocket costs.
   

Saving on dental care doesn’t have to mean skipping treatment. By using your HSA strategically, exploring alternative savings options and taking advantage of preventive care, you can keep your dental costs manageable while maintaining a healthy smile.