Dental News - AAO reminds families about changes in FSA rules

Dental Tribune USA

Fri. 27 December 2013

save

ST. LOUIS, Mo., USA: For families considering orthodontic treatment, using a Flexible Spending Account (FSA) has traditionally been a great way to help pay for treatment with tax-free dollars. These accounts, which are offered to approximately 14 million Americans through their employers, allow workers to set aside funds in a tax-free account and use them for non-covered medical expenses, such as deductibles, co-pays and medical services like orthodontics, dental and eye care.

However, significant cuts to the program are hurting families’ ability to pay for out-of-pocket expenses. 

“More than 60 percent of orthodontic patients use FSAs to pay for treatment,” said Gayle Glenn, DDS, MSD, president of the American Association of Orthodontists (AAO.) Prior to the enactment of the Patient Protection and Affordable Care Act, the Internal Revenue Service permitted employers to enact any maximum annual election for their employees.

Most companies allowed employees to set aside up to $5,000. But beginning in 2013, the Patient Protection and Affordable Care Act amended Section 125 to lower the annual limit to $2,500 for the first plan year beginning after Dec. 31, 2012.

“Families with children and adults considering orthodontic treatment need to be aware of this change and adjust their financial plans accordingly,” Glenn said. “For many people, this represents a 50 percent reduction in benefits.”  

According to Glenn, there is a small silver lining. “The IRS recently issued a new ruling which allows account holders to roll over up $500 into the following year,” she said. “This helps ease the restrictive ‘use-it-or lose it’ requirements.”

 Many companies are currently engaged in open enrollment for FSAs. Families and individuals who are considering orthodontic treatment are encouraged to review the new rules carefully before making their choices.

“Many AAO-member orthodontists offer flexible payment plans,” said Glenn. “If you or your child need to begin treatment, consult an orthodontist to help you maximize these important accounts.”

(Source: AAO)

To post a reply please login or register

Changes in ABO certification: A scenario-based format

With the combination of: (a) external challenges and changes in the certification process by the American Board of Orthodontics (ABO); (b) internal changes ...

10 rules of order in implantology

1. Choose one well-documented, scientifically supported implant system. Any dental implant system demonstrating ongoing research and design will achieve ...

In the laboratory: Automation rules the future of 3D printing

NEOLab, located in Andover in Massachusetts in the US, is the largest privately owned orthodontic laboratory in the country. With more than 45 years in ...

New materials: ‘If nothing changes, nothing changes’

In a Dental Tribune Study Club session sponsored by Shofu Dental Corp. at the American Dental Association Annual Session in New Orleans, Ron Kaminer, DDS, ...

Continuing education and changes in endodontics

How fortunate we are, to be members of such an incredible profession. In spite of the pandemic, the opportunities to learn new and better techniques are ...

Video from AAE dispels myths about root canal treatment

CHICAGO, Ill., USA: A new video from the American Association of Endodontists (AAE) addresses the safety of root canal treatment. In the video, practicing ...

Interview with Prof. Van B. Haywood, USA, about bleaching sensitivity

Dr Van B. Haywood is a Professor in the Department of Oral Rehabilitation in the School of Dentistry at the Medical College of Georgia. In 1989, Dr Haywood ...

AAO holds meeting in nation’s capital

WASHINGTON, USA: There were brackets, there were wires, there were retainers, there were digital imaging devices, there were different types of practice ...

White paper analyzes changes in dental hygiene education

NEW YORK, N.Y., USA: Research by the American Dental Hygienists’ Association showcases the evolution of the dental hygiene profession, the need to ...

Implantmed: A game changer in implantology

Implantmed. These days, W&H’s high-end device is synonymous with dental implantology. Clear design combined with technical finesse make Implantmed an ...

Education

Live webinar
Wed. 24 April 2024
8:00 AM EST (New York)