Everyone is feeling the pinch these days, and budgets are tighter than ever. Ensure your employees save money by offering these three essential dental coverage options.
A LIMITED FSA IN PLACE OF DENTAL INSURANCE
Dental insurance often carries a reputation for being costly relative to its benefits. The key is understanding your employees’ yearly dental needs.
Opting for a Limited Flexible Spending Account (FSA) instead of traditional dental insurance ensures that employees have funds specifically set aside for dental expenses without the burden of high premiums. If your company offers an FSA rollover, employees can carry over up to $640 into the next plan year (based on 2024 limits), providing added security.
PAIRING DENTAL COVERAGE WITH A LIMITED FSA FOR ORTHODONTIA
Orthodontic treatments, such as braces, can be extremely expensive, ranging from $5,000 to $7,500 or more, according to the American Association of Orthodontists. While insurance may cover part of the cost, out-of-pocket expenses can still be significant.
Pairing a Limited FSA with dental coverage allows employees to set aside up to $3,200 (based on 2024 maximum FSA limits) on a pre-tax basis to cover these additional costs, reducing their financial burden.
DOUBLING UP WITH AN HSA AND A LIMITED FSA
For employees transitioning from a Medical FSA to a Health Savings Account (HSA), this combination is ideal. As HSA funds accumulate over time, a Limited FSA can cover immediate dental and vision expenses early in the year. Employees shifting to an HSA-compatible health plan don’t need to worry about losing unused Medical FSA funds when they transition to a Limited FSA.
SAVING MONEY, LESS STRESS, HAPPIER EMPLOYEES
Offering these three options benefits everyone:
- Saving money: Each employee enrollment lowers your tax obligations while also saving employees’ money.
- Less stress: Ease the transition for employees switching from a Medical FSA to an HSA-compatible health plan.
- Happier employees: Ensure employees have the cash flow to cover immediate dental and vision needs.
In today’s economic landscape, making smart choices about employee benefits is crucial. By offering these tailored dental coverage options, you not only support your employees’ financial well-being but also enhance their overall job satisfaction. Investing in a combination of Limited FSAs, HSAs, and thoughtful dental coverage ensures that both you and your employees are protected from unnecessary expenses and stress. Take the step today to implement these options, and watch as your workplace becomes more financially secure and harmonious. Your employees will thank you.
The material in this blog is presented for informational purposes only and such information is believed to be accurate as of the publication date; however, it is subject to change.
Benefit Resource, LLC is an affiliate of Inspira Financial Health, Inc. and Inspira Financial Trust LLC. Benefit Resource, LLC and its affiliates do not provide legal, tax or financial advice. Please contact a professional for advice on eligibility, tax treatment and other restrictions.
