Patients can now utilize pretax benefits to pay for dental care expenses

For some good news, the Department of Health and Human Services published a new rule yesterday expanding the use of health reimbursement arrangements (HRAs) to now include out-of-pocket dental expenses.

Unlike health savings accounts, which employees contribute to themselves on a pretax basis, a health reimbursement agreement involves the employer providing for extra cost coverage by contributing to a medical expense account on a pretax basis to help cover out-of-pocket costs. An additional benefit is that it is not counted towards the employee’s income.

Employers typically providing medical group plans to employees are now free to offer an HSA and contribute up to $1,800 per year for qualified medical expenses that includes medical, dental, vision and long-term care insurance.

As this is a new rule, which will take some time for employers to implement), it is something every patient in every office should be made aware of as they may have this benefit and not even realize it.

This is a right step forward in making dental care more accessible to a larger population.

Elicia Gibson is the Practice Success Editor of DSO News. She is also the Founder and Senior Managing Partner of Dental Allies, Inc. Dental Allies helps practices and dental businesses scale. They accomplish this by focusing their clients on culture, growth, automation and operational improvement. They are partnered with the processing affiliate of a bank to provide the lowest payment processing rates in dental. They’ll introduce you. They are big on making meaningful introductions. Dental Allies delivers results that are real, impactful and meaningful. Elicia began her dental career as a Dental Assistant, holding multiple positions, including office manager, before being promoted to a transition manager and finally a district manager responsible for 17 offices. She was the first business development person at DDS Lab and spent close to a decade in lab sales to national accounts.