It seems like everyone needs something from you during Open Enrollment. We’d like to switch things around and give you something.
You and your employees are on a tight budget these days. Save everyone money by making sure you are offering these three dental coverage options.
A Limited FSA in place of dental insurance
Dental coverage can have a reputation for being more expensive than it’s worth. It comes down to what kind of dental work your employees need in a year.
In many cases, in order to break even after paying plan premiums, employees need to pay for more services than they need. This can result in them losing hundreds of dollars.
Enrolling in a Limited FSA instead of dental coverage ensures employees have what they need for dental expenses without overpaying. If your company offers an FSA rollover, it provides an additional layer of protection by allowing employees to carryover up to $500 into the next plan year. Learn if an FSA rollover is right for your company.
Pairing dental coverage with a Limited FSA for orthodontia
According to CostHelper, employees without insurance typically pay between $3,000 and $7,000 out-of-pocket for metal braces. The average out-of-pocket amounts to $4,930.
For employees with insurance, the average out-of-pocket cost drops to $3,400. Pairing a Limited FSA with dental coverage allows employees to set aside up to $2,650 (based on 2018 maximum FSA limits) to cover dental costs on a pre-tax basis.
Doubling up with an HSA and a Limited FSA
For employees who don’t have a Medical FSA (or are transitioning from a Medical FSA to an HSA), this is the best option. Because HSA funds take time to build, employees with a Limited FSA can rely on a Limited FSA for dental and vision expenses early in the year. Additionally, employees who are moving to an HSA-compatible health plan will not have to worry about losing unused Medical FSA funds when they roll to a Limited FSA.
More money, less stress, happier employees
When you offer the three options above, employees aren’t the only ones who see a benefit. You get:
- More money. Each employee sign-up lowers your tax obligation while also saving employees’ money
- Less stress. Smooth the transition for employees switching from a Medical FSA to an HSA-compatible health plan
- Happier employees. Employees have cash flow to cover immediate dental and vision needs
Lower stress levels today by giving employees Why Do I Need a Limited FSA? This one-pager puts the plan in employees’ hands so they can decide what’s right for them.
Further Reading: The Case for a Limited FSA