Reimbursement for Orthodontia through your FSA:

 

While orthodontia can cost thousands of dollars, the FSA is a great way to offset the cost of this expensive procedure. In addition, using your Benny Card can eliminate the need to wait for reimbursement of such a large expense from ASI (Benny Card details can be found here: http://orpebb.asiflex.com/debitcard/debitcard.htm). In order to be reimbursed for these services, there are a few things to keep in mind:

 

1.)    Reimbursement from your Health Care Flexible Spending Account (HCFSA) is allowed for pre-paid orthodontia expenses, up to the elected amount, as long as the services are still being rendered regardless of the actual visit dates.

2.)    The payment must be made during the period you are covered under the HCFSA.

3.)    If you choose to adhere to the orthodontic contract then you can be reimbursed on a monthly basis over the treatment plan.

 Below are some examples to illustrate how the FSA will work with your orthodontia expenses.

 Example 1: Payment is Made in Full on the First Orthodontist Visit

 You participate in a healthcare FSA in 2014. In February 2014 you sign an agreement with an orthodontist to fit braces onto your daughter’s teeth in March 2014, and are scheduled to be removed in 18 months. For these services, the orthodontist will charge $1800. If you pay for the services on the first visit, you are permitted to be reimbursed the full $1800 as a 2014 expense, or up to your remaining balance for your 2014 election.

 Example 2: Payment is Made Over Several Plan Years

You participate in a healthcare FSA in 2014 and 2015. In February 2014 you sign an agreement with an orthodontist to fit braces onto your daughter’s teeth in March 2014, and are scheduled to be removed in 18 months. For these services, the orthodontist will charge $1800, payable in $100 installments. You would be able to claim $1000 in 2014 ($100 per month from March 2014-December 2014), and $800 in 2015 ($100 per month from January 2015-August 2015), or up to your remaining balance for each year.